I have been reading some comments from UK holders, and there seems to be some division / doubt on how a "Grant" would be seen by Investors: Many think that it should just be considered as a cash input similar to Equity but without any mark up, In that instance a GBP40M grant would only add 18p to the SP.
Others Add that the boost to Sentiment will also contribute to a rise in the SP possibly back to our earlier high of 208p ~ 226p ?
I will still argue that a "Grant" should attract a Multiplier, After all when Lynas finally got back into 'Profit' mode, they saw a huge PE's attributed to those earnings and then basically moved all that profit back into their 'Provisional' Account to help pay off Debt and Kalgoorlie. I think I am right in saying not one cent has ever gone into a Dividend account ?
Free cash is Cash, it does really not matter where it comes from, or where it ends up, so I still think some form of multiplier is warranted.
I would truly appreciate a knowledgeable opinion on this, as I can not think of any apparent Precedents ?
One thing that is for sure is that Pensana's Market Cap is going to have to go through a tremendous amount of Growth between now and 2024 when we will have a far superior operation to Lynas !
If the Registry stays below 250M we will need to grow at an average of around 36-40p / month from now on in.
PM8 Price at posting:
$1.66 Sentiment: Buy Disclosure: Held