Ann: Quantum Leap for LWP Technologies, page-7

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bboys

62 Posts.

20/07/15

10:22

Post #: 15659991
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Originally posted by aquamale28 ↑

The potential financials;

Hallmark Minerals (I) Pvt. Ltd. in the second phase of expansion is in the process of installation of major grassroot plant of 50,000 tons annual capacity to produce low density proppant and resin coated sand proppant. The company has already entered to an agreement for the supply of diaspore clay, lithomaige and kaoline to be as raw material and procured land in SEZ area.

50,000 Tons (at full output, assuming the plant is exclusively used for LWP) = 110,200,000 pounds.
@.26 per pound (http://www.lwptech.com/IRM/Company/ShowPage.aspx/PDFs/1369-20104147/CoretrackPresentationUpdate)

= $28M revenue per year, at 10% of gross revenue = $2.8M licensing at full production (with little to no costs attached).

$2.8M x 13 times earnings (assuming no cost attached to licensing) = $36M - More than our Market Cap on this deal alone!!!!

(Source The average PE multiple for companies on ASX is about 13 times current year's earnings.)
http://www.asx.com.au/education/inv...-high-pe-stocks-that-are-still-good-value.htm

= BOOM!!!

How many other licensing deals like this exist in the World!

Maharashtra has 110M population, India has 1.2B, perhaps there is another 10 times this opportunity in India alone?

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I don't understand why anyone is selling. As I mentioned in another post, fund managers want profit, earning multiples and licensing, watch this fly as it grows and gets on the radars of the big boys.

LWP Price at posting: 1.4¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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