Ann: Investor Presentation Paydirt Battery Minerals Conference, page-11

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Luongho76

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07/04/22

10:39

Post #: 60709607
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Originally posted by bigal36: ↑

When stage two is fully up and running this is what ONE year might look like for the LEO share

Production 332,400

Spod price US$2000
EBITDA AUD $720M
NPAT AUD$500M

Spod price US$3000
EBITDA AUD $1.15B
NPAT AUD $800M

Considering the Spod price is currently US$5000 the numbers will look amazing if all goes to plan.

FFX current MC $1.3B
If the Gold is worth say only $500M and they have at least $100M+ in net cash that would value Leo currently at $800M.
If the Spod price is at US$3000 that's the same as one years net cash generation for LEO at full production.

That would mean the cash on LEO's balance sheet after just two years would be more than its market value if the value of LEO stays where it is.
So obviously once the split happens and production starts the LEO share price could increase at least 10X if the Spod price stays even around US$2000

On top of this if the gold ramps up as planned FFX will also be worth a lot more too plus they will still have 20% of LEO.

The stock should be at least $2.00 right now so to me it still looks very undervalued.

Expand

Isnt stage 2 full production is 831ktpa of spodumene concentrate?
Stage 1 is 506ktpa which is similar to PLS. PLS is at 10B.
Ok sovereign risk does reduce the premium but with Ganfeng and the Chinese invest huge in the continent, we are in good hands

FFX Price at posting: $1.11 Sentiment: Buy Disclosure: Held
10 Upvote

1 Great analysis

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Ann: Investor Presentation Paydirt Battery Minerals Conference, page-11

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