Ann: Diggers & Dealers Conference 2022 Presentation, page-55

Back of napkin calcs …

$500M divided by 3B shares is roughly $0.167 per share.

That’s about 5.8% of current share price.

Now if that $500M relates to say roughly 6 months of production then very roughly you could say that profit per share is at about 10% of current share price. (Which I recon is super conservative given a nameplate annual production of more than 500,000tpa spod and let’s say a USD profit price of $4,500 per tonne gives more than $2B (USD… annually….

Of course if you work from the P680 nameplate of 680,000tpa and again say a USD profit of $4,500 per tonne (allowing very roughly for $500 per tonne costs on a sale price of about $5,000 per tonne and ignoring cost optimisation considerations of whether to sell SC6.0 or SC5.5 and also ignoring how much goes to spot market etc etc), that amount per year per share becomes something like:
- 680,000 x $4,500 = $3,000,000,000
- $3B divided by 3B shares = $1.00 per share.
- $1 per share divided by current SP of $2.87 gives about 35%. (But of course that’s also not converting the $1 USD per share into AUD per share.

So, whatever management decide should be done with that growing (dare I say burgeoning) cash balance, anyone able to tell me where I could otherwise park some capital with at least a 10% profit making capability in that asset? Of course this is all before considering personal better options for sharebuy backs, dividends, etc etc - just, wow, what a problem to have!