Highlights from the recently released valuation report published by GBA Capital Equity Research
Like all research READ THE DISCLOSURE AT END. If you don't like it ... then move on as its pretty much industry standard stuff
Like everything ... how did they arrive at the base TP of A$0.25/sh and do you agree with it.
Pay close attention to:
NOW DON'T ACT SURPRISED OR WHINE WHEN PAM RAISES ~AUD$9m in FY'25
So how did they arrive at A$0.25
So its up to you to figure this out right. It's a well though out research piece.
The suggestion is that on the current assets and capital structure its a base case of $0.25. Its one analyst's opinion - again it is thoughtfully written. I would point to the following:
1. RKLP yep ... fair enough
2. Tama ... I feel that's on the low side at 5% of Eramet. Now you've got to feel comfortable also on is the ground comparable. I think that could easily double on successful field work
3. Rosario ... so taking the $9M of exploration spend and calling that the project value ... OK yes that is a valid methodology and $9M divided by ~196M shares is ~$0.05 per share
EXCEPT that $9M was capital that needed to be raised
AND lets just from grins say that capital was raised at $0.20/sh and so that's an addition 50M shares, so out SOI is now 250M
keeping the Valuation still at $9M (rounding to $10M) is now $0.04/sh ... no big change
The risks is resource related at this time ... is the capital to be invested in the ground going to return multiples of the investment
In others words at A$0.10/sh its ~150% upside to reach the base case.
