MIN 0.47% $50.94 mineral resources limited

True value around $15-$18, page-10

  1. 154 Posts.
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    https://hotcopper.com.au/data/attachments/6441/6441170-30942a08c2b7f770036f712adbb31b79.jpg

    For a 250 TJ/d LPG plant, Here’s a structured approach to estimate potential profit:

    1. Convert Energy to LPG Volume

    • 1 TJ (terajoule) = 1,000,000,000 MJ (megajoules).
    • 250 TJ/d = 250,000,000 MJ/d.

    Given that 1 MJ of LPG is approximately 0.0426 liters:

    • 250,000,000 MJ/d × 0.0426 liters/MJ10,650,000 liters/d or approximately 10,650 m³/d.

    2. Revenue Calculation

    • LPG Price: Prices vary widely. For instance, let’s assume an average price of $0.50 per liter.
    • Daily Revenue = 10,650,000 liters × $0.50/liter = $5,325,000.

    3. Operational Costs

    These can include:

    • Raw Materials: Cost of feedstock.
    • Labor: Wages for staff.
    • Maintenance: Regular upkeep and repairs.
    • Utilities: Energy, water, etc.
    • Other Costs: Transportation, storage, etc.

    Operational costs for a large plant like this could range between 30-50% of revenue, but this varies by region and efficiency.

    For an example, if operating costs are 40% of revenue:

    • Daily Operating Costs = $5,325,000 × 0.40 = $2,130,000.

    4. Profit Calculation

    • Daily Profit = Revenue - Operating Costs.
    • Daily Profit = $5,325,000 - $2,130,000 = $3,195,000.

    5. Considerations

    • Capital Costs: Significant upfront investment in infrastructure, equipment, and technology.
    • Regulatory Costs: Compliance with safety and environmental regulations.
    • Market Demand: Prices and demand fluctuations can affect profitability.

    Summary

    With the assumptions above, a 250 TJ/d LPG plant could potentially generate around $3,195,000 in daily profit, assuming operational costs are about 40% of revenue. However, these numbers can vary greatly based on actual costs, local LPG prices, and efficiency. Detailed financial modeling and market analysis would be necessary for precise projections.
    $3,195,000 x 365 days = 1.16B pa divided by 200M shareholders = $5.80 per share or a possible $2.90 dividend on a 50% payout ratio
    I'm guessing this would add around $40 to $50 to the share price alone
    average PE for companies in the energy sector is around 10 to 20
    Once developed what would this be worth on it's own?
    @ a 10% return is a potential sale of 11 Billion out of the question?

    Credit goes to chatGPT for the numbers used in the above metrics - as I have no idea how inaccurate they might be?

    Maybe someone who actually knows the real world metrics in the energy sector could comment on how close or far away the above figures are?

 
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