GPR are targeting 20,000T of copper production.
At USD2.60/lb works out to be USD114M per annum.
We also think that due to their high concentration of byproducts that the value of the byproducts will at least meet any costs of production therefore EBITDA = USD114M
Let's assume once in production a multiple of 4x (which is conservative) = market cap of AUD572M (USD457M)
Current MC = AUD22M
Plant capex = AUD100M (IMHO)
Further drilling requirements AUD20M (IMHO)
TOTAL AUD142M
TARGET AUD572M
SP TARGET 24c (300% increase)
There are all sorts of ways to calculate this. I have assumed 100% equity to fund the plant. If it was 50/50 equity to debt then the targeted sp would be a lot higher. I have also assumed the capex is funded at the current sp - higher/lower would also change things. What it does tell you though - this project IMHO is way undervalued. Market sentiment for miners is bearish and maybe, just maybe this is a rare find.
Spozzie
GPR Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
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