Good morning Kutyak.
The problem with a forecast like that is that you could say the same for hundreds of other small companies but almost all of them won't make it.
What I do like about this company is there is transparency to the big upside potential.
Ie we have a DFS that forecasts annual cash surpluses averaging around US$100mill or A$150mill per year for much of the mine life. That 20 year mine life could be extended through the new leases picked up recently. 20 years is a long time to define further reserves. You could easily project a market cap of A$1billion based on those cashflows being met in the not too distant future, starting with lower but still good cash flows hopefully mid next year and growing strongly year on year.
We could also see the potential for a market cap of a further $1 billion if the green ammonia is up and running in that 5 year time frame. That valuation can only be a rough guess for now and I'm basing that on a potential A$2bill valuation (US$1.3bill) with a 50% ownership. The other 50% might go to a JV partner that pays our share of capex in exchange for 50% of the project which would mean no dilution of the shares on issue to fund it. That US$1.3 bill valuation might prove conservative but its something that looks to me reasonably conservative to start with. That's just a hypothetical scenario for 50% ownership in exchange for our share of capex but the point is that having a project of that size with strong economic production cost and logistics cost advantages gives us some indication of how the company could realistically reach a further one billion dollar market cap.
So I can see the clear potential for a $2bill mc in around 5 years based on the current projects, rather than basing any target on what another company managed to achieve.
Of course as a company grows, other opportunities for growth arise so who knows how much higher any valuation might eventually go but a mc of anything like $1 or $2bill is a good enough target for most of us I'd guess.
Even the realistically achieveable $1billion on the first project gives us over $1 per share potential.
- Forums
- ASX - By Stock
- MNB
- Ann: Minbos Restructures Board and Management Team
Ann: Minbos Restructures Board and Management Team, page-49
-
- There are more pages in this discussion • 15 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add MNB (ASX) to my watchlist
|
|||||
Last
6.5¢ |
Change
-0.001(1.52%) |
Mkt cap ! $57.11M |
Open | High | Low | Value | Volume |
6.7¢ | 6.7¢ | 6.5¢ | $8.048K | 123.4K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 78153 | 6.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
6.7¢ | 40000 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 78153 | 0.065 |
4 | 62500 | 0.063 |
1 | 164037 | 0.061 |
4 | 160357 | 0.060 |
1 | 50000 | 0.059 |
Price($) | Vol. | No. |
---|---|---|
0.067 | 40000 | 2 |
0.069 | 241507 | 3 |
0.071 | 72075 | 1 |
0.072 | 73500 | 2 |
0.073 | 418053 | 3 |
Last trade - 10.32am 30/08/2024 (20 minute delay) ? |
Featured News
MNB (ASX) Chart |
The Watchlist
1CG
ONE CLICK GROUP LIMITED
Mark Waller, MD
Mark Waller
MD
Previous Video
Next Video
SPONSORED BY The Market Online