Daily price prediction thread, page-6347

Carna,
I put a much more positive spin on the V price than you do
once they initially get into production.

They will go from a “penny dreadful mining wannabe”
to an actual miner.

The analysts will run the ruler over them
and will project Vs earning forward to when they have full production.

They will also look at their mining reserves of around 100 years and the potential on their leases to
further expand these reserves.

And when they’re doing their due diligence/homework
they will discover what we V tragics know,
but is not broadly known by the market
about SILICA sand, and how it differs from mineral sand etc.


So the analyst will price V on
projected forward earnings which include :

1/ Much higher margins per tonne.
2/ Much larger volumes per annum than 2 million tonnes.
3/ The potential for V to be taken over.
4/ The relative low cost and simplicity of setting up plants to mine and process the sand
compared to traditional mines for other minerals.

So while I acknowledge your generic comment about the p/e of “Tech”shares being higher than “Commodities” shares,
all the above will in this case
lead to an initial P/E much greater than 10.
So this will give V a much better price than the 70 cents you suggest.

In fact I believe it will be many multiples of 70 cents.

All IMO

DYOR.

Caveat emptor.
bendigo.