First time poster at EVG but been holding for years. Managed to average down but low liquidity is a killer at the moment.
While discount rate used seems low (in current market) even if that is @10% the NPV would at least still be double/triple current market cap.
Probably only concern at the moment is working capital:
1. Sales won't happen till Q3'24 and depending when it is shipped out to Europe could only see cash inflow Q4'24. Sea freight from India to Europe will take between 4-6weeks. Would be good if they can get a portion of it in cash upfront unlikely.
2. To ramp up production they would need to buy concentrate/raw materials to 150t/month. Any ideas what this would look like from costing and recovery perspective? Apologies if its already in all the materials presented. If we assume 100% recovery would indicate 900t (for Q3'24-Q4'24) raw materials (lets say at A$1000/t) = A$0.9m or A$0.45m for EVG's share (though highly dependant on concentrate price)
3. Q1'24 cash sits at ~A$2.5m, Q1'24 cash used in operating was A$.44m <- and this was before production start/ramp up, I imagine would increase meaningfully in Q2-Q3'24.
Gut feel is if they want to expand production rapidly to capitalise on demand they might need a cap raise to start procurement on those longer lead time items. Different story if they could get some type of working cap debt funding to not dilute shareholders!
- Forums
- ASX - By Stock
- EVG
- Ann: Progressing to full production at Expandable Graphite site
Ann: Progressing to full production at Expandable Graphite site, page-10
-
- There are more pages in this discussion • 6 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add EVG (ASX) to my watchlist
(20min delay)
|
|||||
Last
2.4¢ |
Change
0.000(0.00%) |
Mkt cap ! $8.327M |
Open | High | Low | Value | Volume |
2.5¢ | 2.5¢ | 2.4¢ | $5.357K | 218.6K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 50000 | 2.3¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
2.4¢ | 114091 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 50000 | 0.023 |
6 | 432608 | 0.022 |
1 | 142857 | 0.021 |
5 | 229600 | 0.020 |
4 | 1349123 | 0.019 |
Price($) | Vol. | No. |
---|---|---|
0.024 | 114091 | 1 |
0.026 | 25000 | 1 |
0.027 | 25000 | 1 |
0.028 | 425000 | 2 |
0.029 | 100000 | 1 |
Last trade - 14.15pm 16/08/2024 (20 minute delay) ? |
Featured News
EVG (ASX) Chart |