EGR 2.47% 8.3¢ ecograf limited

Epanko Capital costs

  1. 563 Posts.
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    In my research I haven't been able to find reference to cpital costs to build the mine. Has there been any mention thus far. I hold this stock and on a peer comparison it should bust through $1, however my concern is the relatively low revenues (circa 10 million dollars per year). Assuming operating costs are 50 percent that amount of free cash flow (5 million per year) could not justify too much being spent on developing Epanko. My estimates are based on 10,000 tonnes production at $1000 per tonne. Even if the mine was developed for free a P/E of 10 would only value the company at a MC of $50 million (where it is currently at).

    Also is there any information on the condition of the Merelani processing plant? It is unlikely that it can be restarted without quite a bit of costly refurbishment.
 
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