The market capitalization is basically now at cash backing, meaning the enterprise value is nil. You'd think we'd have to be near the bottom, but who knows with the current IO market and now the general market seeing red. If you're confident that the company can get to production and towards that stage 2 of 2mtpa, current prices would look like a bargain.
A quick calculation, 2mtpa x $40 (IO sale price of $90p/t - OPEX of $50p/t) = $80m per annum. Current market capitalization is $55m. It's all back of the napkin stuff though until we know how the CAPEX is going to be funded, but it gives a general idea of the potential income generation capabilities of the project. JV's, capital raisings, & debt, are all funding options and will all affect the stock price differently.
clstw, it's been a long wait hasn't it? Hopefully the delivery of the document at least puts some confidence back in the stock. After the Scoping Study is released, the focus will move towards CAPEX funding and final approvals from ROC.
EQX Price at posting:
48.0¢ Sentiment: Buy Disclosure: Held
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