I got a puny little allocation in the shortfall. Have added about 10 fold on market since. Sometimes these opportunities presented to sophs re-spark interest and highlight just how undervalued a stock is. For me reviewing the project shows just how undervalued ATC is.
ATC sit at an EV of around $50m AUD and have an advanced stage HPA project with an EPC contractor, partial funding, offtake with Mitsubishi for 10 years etc etc. Granted they need to get the final funding over the line but when that happens they expect to produce free cash flow of around $100m AUD p.a. Once operational and achieving these metrics I'd expect to see them valued around $500m minimum.
The wild card is the graphite coating technology. The information provided to date suggests that they are able to more uniformly coat these micro particles with a thinner coating than most existing technologies. If they can indeed establish themselves as a tech leader here then this alone would see them valued at multiples of the MC today.
The battery supply chain and technology market sector is running hot. ATC begins its run with one of the most advanced projects on the ASX for the HPA segment and has the technology kicker. Very hard to imagine that a rerate is not about to occur
ATC Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
