blr - valuation , page-5

Thanks mate,

It's nice to have a sensible Forum conversation with a fellow member. For this reason, I'm now as of yesterday, a dedicated HC posting only Member.



Just to complete what I left out from my previous post.



Recalculated using an adjusted increase in PE of 12

Includes Income $60m less $8m - interest (ie $80m at 10%)= $52M less production cost of $28m = $24M
Earnings before tax = $24Mill
Annual earnings after tax = $15Mill
Projected PE ratio ( based on current share price equals 1.16 )






Based on a PE of 12 BLR share price comes in on a very respectable 21 cents per share ( 1 Million Lbs Production )
Now ramping it up to 2 Million Lbs really gets to heart pumping