After reading a thread on another stock it occurred to me that perhaps some of our resident trolls aren’t trolls, but rather just ignorant.
So I’ve unblocked you Roye, to talk about NPV, because I suspect you might not understand how it works. For example, did you know that if an investment of $1000 had an NPV(10) of $0, that doesn’t mean its worthless. It just means your investment will get precisely a 10% return per annum?
I never understood the way you carried on about the market cap and NPV. But now I think it’s possible you are simply financially illiterate.
I think its pointless trying to unpack NPV for you, so I’ll cut straight to the simple math.
Under the old PFS, ADN will obtain an average post tax cashflow of $40M per year, assuming ADN gets a 75% share. That’s cash flow, not accounting profit. Now, a PE of 20 gives a mkt cap of $801M. That’s just ceramics, without any of the upside, using the old PFS, which you insist no one has the right to look beyond until the DFS is published.
So why are you advising ADN is still overvalued?
Now, I recognize we aren’t in production yet, so happy to accept a smaller proportion of the $801M mkt cap. But then should we ascribe zero value to the coatings BOA? If you insist we are overvalued still, please support this with numbers.
(20min delay)
