Ok guys I did a bit of research to find the Market Cap of a few companies that made between $22-68 million net profit in the last financial year.
EHL $49m $637m MC ERA $47m $905m MC ENV $45m $961m MC SBM $68m $726m MC ACR $57m $574m MC ABY $57m $346m MC AHE $31m $547m MC CGX $60m $783m MC DRA $21m $100m MC PAN $22m $289m MC PPC $22m $391m MC RMS $62m $366m MC RSG $61m $814m MC SLM $36m $440m MC EZL $26m $200m MC
Of course there's a lot of other variables that contribute to the MC of a company, however if CSD can make upwards of $20m net profit annually, which is looking very likely once production begins at the end of 2013, then what should our MC be?
5000 tonnes tin concentrate x $25000 per tonne = $125m
minus costs of $12000 per tonne
(5000 x $12000) = $60m costs
$125m - $60m = $65m profit
This is not taking into account any of the Iron Ore, Copper, Fluorine, Copper, or Zinc by products either.
So there's a lot of upside from here, unfortunately with no news due for probably 4 or 5 months going on the drilling results turnaround from the last drilling schedule, impatient investors will probably have sold us down to 4c by then.
Very interesting indeed!
CSD Price at posting:
6.8¢ Sentiment: ST Sell Disclosure: Held
