Article: Reward studies 400,000 t/y potash project in WA, page-3

Ozkartman

The development timeline recently put out by the company would give the best indication of how long things will take. The company is ticking the boxes and we will be re-rated accordingly as we are de-risked along the way. I feel the numbers used in the scoping study are conservative, and going by the base case scenario of A$154m EBIT we could be earning profits after assuming 30% tax and 2.5% royalties of A$104,000,000/yr. Using an industry standard PE ratio of 20 for potash producers, that would give us a market cap of $2.08bn. Bear in mind our current market cap is only $75m. These are very real and achievable numbers, but whether we reach this point before we get taken over is another story.