Goldphyre shares forecast to double on back of major WA potash resource, page-11

i have research this stock for months & was buying options under 1 cent

$700/t is not a good price

on 100,000 tonnes output, on a PE ratio of 10, GPH would be worth 27 cents in the long term (i.e. in about 4 years time, once they start producing, if they are lucky)

$700/t would make AUS$35M pa in EBITDA or $18M NPAT

do the math

shares have to be issued for CAPEX, say 35% equity funding

for investors to earn 160% profit for funding the CAPEX, the raising would have to be at 10 cents

if the raising was at 20 cents, their return would be 73%

not worth it



if i plug $1000/t in the spreadsheet, the raising price can be 25 cents and the return to investors 211%

EBITDA becomes $63M and profit $38M



i have had my spreadsheets prepared for months, waiting for today

$700/t potash simply won't cut it

see my 'ugly duckling' thread in AMN (although the PE ratio there is only 9)

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