Using your numbers on sales/opex, there is $23m in annual cashflow (after opex). Personally, I think you have understated opex by $50 per tonne, when averaged across 6 other companies, so I've used $400.
Capex is $39m, not $50m (refer scoping study issued by KNL).
At 20c, company has market cap of $14.5m (including the dilution to the EGT), which is tremendously undervalued for a company with 10 year cashflow of $231m (21,000 tonnes * 10 years * (1,500-400)), from which to repay $39m capex + interest, leaving around $180m. I haven't included management costs, but then I also haven't included any resource upgrading, or their other project upside.
KNL Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
