From an FA point of view, what is the goal for this one?
As a straight base case we should lock in:
$3m profit (plus several years worth of accumlated tax losses in there). Base case PE of 12. Bugger all debt gives a fully diluted value of $36m / 530m = 6.8c.
Add in the upside for the plant expansion of say $3m a year (being conservative) and get a valuation of close to 14c.
Remember that tox is a skin and bones operation at the moment and so using very conservative numbers is wise as costs are harder to contain as the operation becomes more profitable.
Thoughts / feedback welcome.
hatless
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