I think it is difficult to see the net profit of Geelong being more than $4m per annum on the numbers we have seen so far in the qtly , NET not EBIT , but I agree with the potential of the US being where the real market upside could eventuate.
The figure you noted of around 60+ M being factored in , if they do get a big contract , is I agree a low premium , if they were to sign a $20M + net profit business as the first signing .
I would value that at 7-8 times + the 20 Odd million on Geelong, and 20 odd million on Silica , and agreed the price would be cheap , and worth well above $2.00
The risk is , of course the signing of long dated fully funded , and dual country deals without long lag times
MHM Price at posting:
$1.21 Sentiment: Hold Disclosure: Not Held
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