I know jumpstart has been in LMG for a long time but nothing is...

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Magmag

350 Posts.

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06/06/20

09:30

Post #: 45073767
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Originally posted by jumpstart: ↑

There is going to be a 100x consolidation at some point. 1.3bn to 129m.

Finance Data
Pilot AUD EBITDA 6.5m Mg = USD 2.30/lb 3,000 tpa pilot
Cashflow form 40,000 tpa assuming proportionality with the 3,000 tpa plant = 40c/sh after 100x consolidation. This is EXTREMELY rough estimate.
The best recent number I could find was $120m for the bigger plant. Meaning AUD $120m/129m
Using 2015 presentation data the NPV on 40,000 t.p.a plant was AUD 137m.

If you have say 100,000 shares now, you will have 1,000 in future worth the princely sum of $400.

Hopefully someone can do a much better job of working things out. At the moment it looks smarter to sell at 1c than to hang on.

Based on the above then the TOTAL share value is currently $137m/1.2bn shares = AUD 0.10/share i.e. 10 fold of current sp.

Or comparing to my 40c earlier, $137m/129m shares = AUD 1.06 c/share. 100,000 shares now consolidated to 1,000 shares gives current valuation of that holding = AUD 1,000.

The sobering aspect is that the capex for the 5,000 tpa plant was $40m. The plant we have now is AUD 56m for a 3,000 tpa plant. Not sure what it says about earlier NPV of 137m for a 40,000 tpa plant.

Maybe some others can have a stab.

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I know jumpstart has been in LMG for a long time but nothing is relevant until we get some very basic updates on well overdue announcements on

LMG Price at posting: 1.0¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

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