Was $154M EBITA with 47MT of throughput... We expect 85MT of contracted throughput... This is 80% higher throughput...
Wouldn't a ROUGH estimate be EBITA should increase by 80%?... This would be to $277M.
However, another 10% for economies of scale, fixed costs not increasing, the December hopeful price increase, improved operational effeciency... seems reasonable?
This is $304.7M.
At 12.5X this is $3.8Bn DBCT sale price.
Where have I gone wrong?
Note:- If 80% increase in throughput increases EBITA by 40%, and a 12.5X multiple is used, this is $2.7Bn sale price....
BBI Price at posting:
7.8¢ Sentiment: None Disclosure: Held
