The asset is good and Bell Potter has recently modelled future EBITDA of 427 mn pa on average from the mine...let's be blunt this is absolutely incredible from an IPO of only SIX MILLION DOLLARS.
Reasons for scepticism for an eleven figures+ valuation:
Mine start-up costs? Does the expertise in Niobium mining or refining exist in Australia? Is there a training cost in addition to general drillers, chemists, etc with experience with gold/PGM, iron or rare earths etc? What does the start-up cost do to valuation?
Level of capital investment necessary for WA1 or a TO buyer.
What is the cost of dilution or debt funding if a TO off is rejected? Would a TO buyer want the other firm assets?The logistics of the three tenements which are a long way from each other and the remoteness of the star asset.
What are the possible resource price movements from competition?
What is the mine life?
What is the timeframe to mine the asset and sell the ore or process and sell finished or semi-finished refined metal?
What discount rates/cost of capital rates are being used in NPV calculations?
General discussion, page-7263
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$14.97 |
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Mkt cap ! $971.0M | |||
| Open | High | Low | Value | Volume |
| $15.05 | $15.23 | $14.55 | $3.209M | 216.5K |
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| No. | Vol. | Price($) |
|---|---|---|
| 2 | 978 | $14.68 |
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| Price($) | Vol. | No. |
|---|---|---|
| $14.99 | 300 | 2 |
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