My take on the "current market value" for FLC:Cash & cash equiv:...

My take on the "current market value" for FLC:

Cash & cash equiv: USD64m = AUD91m

2022 EBITDA USD3m = AUD4.3m @ 15x = AUD64.5m

Theoretical current value: AUD155m or thereabouts or about $0.24cps.

I see that there would be a modest EBITDA multiple being paced on the announced expected EBITDA of USD3m. What we need to get this running much higher is a sense of potential EBITDA growth beyond 2022. If they can start to show capacity for significant jumps in EBITDA (say from $1m last year to $3m this year then to, say, $8m in FY23 then, say, circa $15m in FY24, etc) we could start to see some share price action as the market starts to "value for growth". At the moment though, there is not enough info to get confidence in a strong EBITDA growth story - it sounds more like a "manufacturing style growth" story at the moment and so a low multiple would likely be applied.

Irrespective - it is at least 50% undervalued at the moment based on the above and with luck, their achievements through calendar 2022 may start to allow for a "growth" narrative to be developed to take it further.

GLTA & DYOR