$600M? If you use the DFS sensitivity analysis, a 15% drop in SOP (which is very realistic) gives a NPV of $400M. They didn’t do an analysis for Fx but we are along way from 0.67. The currency move drops the NPV further. If the DFS was done now Lake Wells would probably have a NPV 50% less. When KLL revised their financials in March they dropped SOP pricing from over US$600 down to under US$500. APC isn’t alone in having out of whack valuations. I think an increase in production to nearer 200Ktpa is on the cards and was alluded to in some figures in a previous announcement (can’t remember which one). We will get confirmation of these out of whack financial models when the sales figures for KLL and SO4 start to roll in.
APC Price at posting:
19.0¢ Sentiment: None Disclosure: Not Held
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