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8.0¢ cokal limited

Ann: Infrastructure Joint Venture Advances to the Next Stage, page-227

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HairyRichard

3,856 Posts.

543

24/06/24

20:14

Post #: 74467404
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Originally posted by coeus12345: ↑

The market is pricing the company based on what information the management provides.

14 mt coal owned by Cokal
6% sales royalty paid to Eddie
Average realisatoion at current price - pre Eddie Royalty = $185/t
Average realisatoion Net of Eddie Royalty = $174/t
Average cost of production = $150-160/t
EBIT margin -- pre tax, pre interest expense = $14-24/t
Monthly volume = 2 barges operating at 4000/t x 2x = 16,000 tones
Estimates days of operation = 250 days = 8 months
Annual coal sales volume = 16,000 x 8 = 128,000 tonnes
Annual EBIT margin = US$1.8-3.0 mn
Net Income = say 50% of that post interest and tax = US$900k - US$1.5 mn
Market Cap = US$ 63 mn
P/E ratio - 42x - 71x

Super High P/E ratio at very good coal prices.

Peak pricing and peak multiple ! == EXPENSIVE at current disclosures and operation.

People who overlook the other side of the argument -- have their head in the sand.

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Unreal you're apply a PE ratio to value a mining company in ramp up phase

Also, I haven't see where you got your production costs from. I don't follow CKA super closely so if you haven't assumed the prices can you let me know where you got them?

CKA Price at posting: 9.2¢ Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

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(20min delay)
Last 8.0¢		Change 0.002(2.56%)		Mkt cap ! $86.31M

Open	High	Low	Value	Volume
7.9¢	8.0¢	7.5¢	$30.51K	391.7K

Buyers (Bids)

No.	Vol.	Price($)
3	38350	7.5¢

Sellers (Offers)

Price($)	Vol.	No.
8.0¢	325967	2

View Market Depth

No.	Vol.	Price($)
3	38350	0.075
2	101126	0.073
2	264098	0.071
3	297700	0.070
1	73529	0.068

Price($)	Vol.	No.
0.080	87512	1
0.081	312804	2
0.082	200000	2
0.084	340000	1
0.085	2083	1

Last trade - 16.10pm 18/10/2024 (20 minute delay)

CKA (ASX) Chart