as soon as this stock gets some broker coverage its gona...

as soon as this stock gets some broker coverage its gona takeoff.

just look at FMG, 55mt pa at a $70 margin = EBIT of $3.4n and a market cap of $34b = 10x P/E. this would also include some expectation of output increasing above the 55mtpa.

AXO will have costs around $31 per tonne and a profit margin of around $50 being conservative.

at 6mt pa they should have EBIT of $50x6mt = $300m
at 10mt pa they should have EBIT of $50x10mt = $500m

at 6mt pa on a 7x P/E = market price of $4.20
at 10mt pa on a 7x P/E = market price of $7.00

note both assume equity increases to 500m shares.

dont forget that these guys will have a resource of 600mt once the drilling has finished, ie a mine life of 60yrs. at some point they will increase production and deserve a P/E higher than 7x and will be north of $10 when that happens.

i think that by August this stock will be rerated to $2.50.