@scarlett hmm not sure about your calcs there. IMHO you either take the earnings, or rather profit, of a year and apply the P/E to them. Or you compute the NPV of the company over a certain period of time, typically I have seen 8 or 10 years. But you should not compute a NPV and multiply that with a P/E of 10.... Is a bit double.
So if you take the annual earning of $6m the MC would be $60m with a P/E of 10.
I you take the NPV as MC you get $20m.
Think this range of $20m to $60m is quite realistic. Also if one compares to ORE which produces 10000tpa (10x more) which has a MC of about $600m. So I would say that based on phase 2 a MC of $60m would be realistic (SP $0.06).
However, phase 2 is now basically a given. And the stock market should reflect the future. Since the future should be similar to ORE (10-20ktpa) the future MC is of the order of $600m.
So near term the AGY valuation may vary between $60m to $600m..... The more the market believes AGY will manage to do phase 3 the closer to $600m the valuation will get.
AGY Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
