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clock Created with Sketch. 29/03/23
08:23
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Originally posted by puppyeh:
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why is 2-3x EBITDA a fair price for BT Mining? As you say, NID isnt worth much, and Stockton has 4yrs of life left (on a proven reserves basis, the measured resource seems >20yrs of life tho and imagine that is reasonably straightforward to prove up into reserves). Every other met coal co in the world - with much longer provable reserves trades at 1-2x EV/EBITDA, with generally much higher liquidity, no one-mine risk, etc. moreover BRL's own stock trades today with a $95mm EV or so against a look-through EBITDA of $150mm, so closer to 0.5x EV/EBITDA. of course part of the reason BRL trades at a discount is this structural issue we are discussing, so it is all circular.
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true 2.5x might be a bit high although will be interesting to see what the qld bhp met mines sell for.
(20min delay)