The NPV is 'probably' >US$1bn which is north of A$1.3bn if we assume an exchange rate 0.75 USD/AUD. On a fully diluted basis, set that against 1.15bn shares in issue then you get an implied value of circa $1.10/share.
If we discount that by 50% to factor in future CRs etc then your still looking (on the back of the envelope) around 55 cts on paper (assuming a rising graphite price on higher global demand for batteries for electric cars, etc).
More near term, Mr Sugar's highest options are exerciseable at 12cts - he wouldn't risk his capital for anything less than 100% + return IMHO.
We are yet to receive newsflow on more mets, offtake agreements and road showing in the US as catalysts for further upside. Further to this, we have MNS trundling towards a $500m plus valuation enhancing the overall appeal of the graphite sector.
Sit back, relax and enjoy the ride ... a few more bags in this one!
VRC Price at posting:
7.8¢ Sentiment: Hold Disclosure: Held
