company valuation

Just read this off another forum. Maybe I'm missing something, but it seems to ignore the cash they've just banked from the recent capital raising (A$20M)? It also seems to ignore the ramp-up that could be expected from the doubling of production at Surda? This doesn't allow for any of the other projects in the growth pipeline either it would seem. Would appreciate someone setting me straight if this not correct but the post from below seems way off the mark.

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Originally Posted by prawn_86
Thanks Lazyfish,
I was wondering why the price difference was so large.

So heres a few quick calcs:

4500 * 20% copper = 900tons

900 * $ 2k = $1.8mill

$1.8mill / 150mill share = 0.012 = 1.2cps

Take out 50% costs = .6cps

So therefore at current price (17c):
PE = 28.3.

So my new take on the co is that a bit of cashflow is always nice to have and once they extend the processing amount it will be even better, and allow them to focus on all their other projects without the need for capital raisings etc.

So essentially imo, it is still worthwhile, although it now depends a lot on other projects and their viability.
Except now you've gone the other direction and factored in the 20% copper in concentrates as well as only allowing $2k per tonne whereas copper is more like $6k per tonne which will bump EPS up by a factor of 3 giving a PE of 9.4 although this doesn't factor in the deal with Hindustan which probably takes some away from this.

Lazyfish's comments re putting in a decline though is probably where the money will be made (we hope - I hold)