Also if they can use these funds to upgrade project in terms of production and subsequent NPV I am happy.
Currently EBITDA of US$110M over a 40- year mine life and a post-tax NPV of US$499m. So around 37 cents NPV per share post raise.
Hopefully the funds are spent increasing this as I always thought the scale of this project was too small and conservative, albeit it was representative of the 20 mil MCap at the time. Without knowing the detailed economics and purely looking at supply bottleneck and strategic importance, they should be looking to double or triple production which would significantly affect NPV.
Not really happy with the fluff announcements prior to TH, but then again they could genuinely be for informing even if it did seem a little forced.
I think 14 - 16 cents is fair value in comparison to peers in the short term.
RNU Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
