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6.98%

8.0¢ argosy minerals limited

I would say that is a fair estimate of the numbers, though when...

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keepsmiling

4,208 Posts.

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12/11/21

11:16

Post #: 57523344
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Originally posted by PRB74: ↑

I've built up a small holding over the last few years - averaged down to .16 a share so feeling pretty comfortable at the moment.
But I'm kinda simple when it comes to looking at the basic maths of the company.

For argument, lets assume an average of $25k per ton for Lithium carbonate. Therefore 2000 tpa means revenues of $50 million a year, and 10000 tpa means revenues of $250 million a year. Fair enough, looks good.

But I don't think I've seen any concrete estimates of costs? Pilot plany isn't cost efffective, which is fair enough. But what are the full costs estimated to be for the 2000 tpa plant? $5k per ton or $20k per ton?

If we WAG $10k per ton GP, then the 2000 tpa plant generates $20 million GP a year, and the 10000 tpa plant generates $100 million. At a P/E of 15 doesn't that imply a marget cap of $300 million for the 2000 tpa plant and a market cap of $1.5 billion for the 10000 tpa plant? So the current price would seem to have the 2000 tpa plant priced in?

Just thinking through the basic maths of what AGY might be worth.

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I would say that is a fair estimate of the numbers, though when the 10kpa addition is made the cost curve should get closer to $5kpa, if not under, IMO.

AGY Price at posting: 33.0¢ Sentiment: None Disclosure: Not Held
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(20min delay)
Last 8.0¢		Change -0.006(6.98%)		Mkt cap ! $116.4M

Open	High	Low	Value	Volume
8.6¢	8.7¢	7.9¢	$402.0K	4.882M

Buyers (Bids)

No.	Vol.	Price($)
1	12500	8.0¢

Sellers (Offers)

Price($)	Vol.	No.
8.1¢	176753	2

View Market Depth

No.	Vol.	Price($)
1	12500	0.080
6	145465	0.079
6	577820	0.078
1	20000	0.077
3	160000	0.076

Price($)	Vol.	No.
0.081	176753	2
0.082	446400	4
0.083	111144	2
0.084	89842	2
0.085	923578	5

Last trade - 16.10pm 24/06/2024 (20 minute delay)

AGY (ASX) Chart