mak profitability

Hi guys and girls, i have jsut run some figures on MAKs future profitability on the low RP prices thought you might be interested.

http://www.hotcopper.com.au/post_threadview.asp?fid=1&tid=892815#4037411

Here we go -

Share price $0.585
Shares on offer fully dilluted post BON Takeover (approx) - 133,500,000
Cash in bank $13m (inc BON 2m)
OPEX/t - $150
CAPEX - $107,000,000
Capital Raising at $0.585 = 107m/0.585 = 182,905,983
Total fully shares on offer post Capital Raising = 316,405,983

RP FOB $US - $125.50
Production 3mtpa
AUD/US (FX) - 0.75 * $125.50 = $167.33/t
RP FOB AUD = $167.33

Revenue = 3mtpa * 167.33 = $502,000,000
Costs = 3mtpa * 150 = 450,000,000
EBITDA - $52,000,000
TAX @ 30% = $15,600,000
TRaditional Owners payment @ 2% = (52,000,000 - 15,600,00) * 2% = $728,000
Gross Profit = $35,672,000

EPS = $0.113
Divie Payout at 25% = $0.28

Cash in bank after divie payout (inc 13m) = $39,754,000

Equity per share - $0.13
PE - 5
Share price = $0.56
Market Cap = $185,097,500

Current Market Cap (fully dilluted prior BON) = $66,105,000


So with a bucket load of dillution and buggar all operating profit, we still can have a near trippling of our current Market Cap, along with a dividend. Yeah it wont be our 10 bagger but, the mine will be up and running for when the RP prices head north again.


Harry out