Production
- Spodumene Concentrate = 120,000 to 160,000 tonnes per annum (average 140,000)
- Tantalum Pentoxide = 300,000 pounds per annum
Before processing, these ores are worth
- Spodumene Concentrate = US$900 per ton
- Tantalum Pentoxide = US$60 per pound
Total worth per annum (before accounting for operating costs)
- Spodumene Concentrate = US$900 per ton x 140,000 = US$126,000,000
- Tantalum Pentoxide = US$60 per pound x 300,000 = US$18,000,000
Total worth per annum (after accounting for operating costs)
- Spodumene Concentrate = (US$900 &ndash US$250 per ton) x 140,000 = US$91,000,000
- Tantalum Pentoxide = (US$60 &ndash US$30 per pound) x 300,000 = US$9,000,000
The infrastructure is mostly in place or funded by Tawana Resources, so Alliance shouldn&rsquo t incur too much of a cost here.
Total operating profit per year about US$100,000,000 or S$140,000,000
Alliance Mineral 50% share in Joint Venture = $70,000,000
Additional expenses for Alliance Mineral assuming $5,000,000 (tax, administrative etc)
Net Profit = $65,000,000
Assuming a 8x P/E ratio, same as Galaxy Resources = Market cap to be about $520,000,000
Target Price = $520,000,000 / 480,000,000 shares = $1.08 per share.
Well, above is an ideal scenario. Execution risks poses a serious threat as well as offtake agreements. An also, if the disclosed data are not what they actually are.
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- Ann: Tawana Resources NL Investor Presentation April 2017
Ann: Tawana Resources NL Investor Presentation April 2017, page-5
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