Ann: Full Year Results Presentation, page-8

First 8 Last

Share
Profile

Follow
Autosime

20,368 Posts.

1988

29/08/18

12:40

Post #: 35263424
Share

Originally posted by Jimmy_C ↑

Is it genuinely and definitely cheap at 22c, though? I don't think it is - PRT's earnings are going backward at such a breakneck speed that it's impossible to know what cash flows to equity will be from here. That's been my issue for the last 18 months.

The way i see it, they've got $15m net debt, plus they need to pay the $15m upfront affiliation fee (which i don't think appears in the FY18 accounts as the deal was closed 20 August); so, PRT today is effectively $30m in net debt. That's 2-2.5 years' NPAT on FY19 $12-15m guidance, but we know FY20 is likely to be worse than FY19 due to another step-up in affiliation fees. If NPAT steps down to, say, $10m in FY20, then PRT is not going to pay a dividend until FY21 at the earliest. So, if you were to do a reasonable DCF (equity) of PRT from here, i'd say:

- Nil cash flow until FY21
- FY21 close to 100% dividend payout; NPAT maybe starts in FY21 at $10m but continues to decline
- Run-off to zero over 5-10 year period; no terminal value
- Applying a 15% discount rate to that and you won't get anywhere near $0.22.

I actually think PRT is worth $0.12-$0.14 based on my view of the industry and the terms of their updated affiliation agreement.

Expand

I continue to feel there is a value that should be allocated for corporate action as the synergies that would come from this make it much more attractive st the current price.

PRT Price at posting: 21.5¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

RCE

Recce's R327 found effective against E.coli during clinical trial

SVL

Silver Mines models five new calderas close to 396Moz Bowdens deposit

CMX

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Microcap Wrap: 5 explorers with news out today

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

AVA

Ava Risk Group expands US presence with A$0.7M Substation Deal

LRV

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

LU7

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

There are more pages in this discussion • 35 more messages in this thread...

First 8 Last

Add PRT (ASX) to my watchlist

Ann: Full Year Results Presentation, page-8

Top Stories

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

Recce's R327 found effective against E.coli during clinical trial

Silver Mines models five new calderas close to 396Moz Bowdens deposit

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Microcap Wrap: 5 explorers with news out today

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

Ava Risk Group expands US presence with A$0.7M Substation Deal

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

Featured News