Back the truck up time. $75.6m market cap. If you exclude LEL...

Back the truck up time.

$75.6m market cap. If you exclude LEL which is non core the implied market cap is roughly $59m.

For that you get immediate cashflow via production in Peru with 250k targeted p.a. Who knows what the average iron ore price will be. Call it $150t and allow for some slippage in cost and exclude any premium to get to, say $60t profit. That’s $15m profit p.a.

So you’re roughly trading at a forward PE of 4, which excludes the potential of the full Peru resource, which we know is probably worth hundreds of millions pre development and would tick a lot of boxes for China.

Then add in Paulsens, which is now approved and is scheduled for production early next year. Significantly de-risked with a high potential of minimal dilution given immediate cash flow from Peru, potential for prepayments and even debt financing. The post tax NPV from memory was $227m - correct me if I’m wrong.

So if exclude LEL, exclude Peru, then its trading on a P/NPV of roughly 0.26x, when at this stage it should be 0.5x to 0.6x. Not to mention the NPV is based off a much lower iron ore price.

There’s probably 4x to 15x upside here depending on the scenario. 15x comes from a Chinese bid for the Peru business and development of AU assets.

Not much effort to multi bag from here in 12 months IMO.

GLTAH