Given that I'm now sitting on quite a nice paper profit of about 35%, I've had another look at ATR fundamentals to see if I should sell some. My resounding answer, not a chance.
I've estimated the following prices based on a quick google search. Ziron, 1000/ton. Ilmenite, 100/t. Rutile, 500/t. Leucoxene, 500/t. I then put dollar values to their mineral reserves and resources from the Donald project, which is available in several of their latest presentations or announcements.
Total mineral reserve value: A little over 6 BILLION AUD. Total mineral resource value: Over 20 BILLION AUD.
Yearly revenue based on mining 7.5 MT pa is 170 million, or 340 million pa based on the 15 MT pa that they're considering.
These figures are all out there if you search. Based on this, Astron muct be the most underpriced company on the ASX. The Donald Mineral Sands mine has approval with the license granted and environmental approvals. Mining should start within the next year. This is not even taking into account their value adding downstream processes. They are also cash flow positive, and have about 170 million in cash.
Market cap is about 155 million. Ridiculous!
I'll take some profits at 5 dollars perhaps, but will probably still keep most.
ATR Price at posting:
$2.45 Sentiment: Buy Disclosure: Held
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