5c would give FAS a market cap of approx $67m which should be a shoe in if they can get this finance deal over the line.
I know it is a big ask but FAS are at very advanced stages of acheiving this and that is why although risky this is about as good a risk/reward punt as you will get at these levels IMO.
Lets throw around some CONSERVATIVE figures.
20mt sold for $100/T = $2B 20mt @ nett profit of $30 per ton = $600000000 nett profit. $600000000 x 50% (allianze share) = $300000000 $300000000 / 1.35B shares = 22c per share with MC around $297m.
Even applying a market stupidity/irrational discount of 50% to this we still have approx 11c per share or MC around $148m.
Oh and then there is SHIP North, Stage2, Stage3, Gold........
The flip side, if FAS can't put this finance deal to bed with the amount of shares already on issue and a large cash deficit the future would be bleak to say the least. It's do or die here IMO, situation critical, that is why the SP is where it is.
Goodluck all.
FAS Price at posting:
1.5¢ Sentiment: LT Buy Disclosure: Held
