MARWOODE, Sorry, although I agree with your calculations, I disagree with your conclusion. YES, the project presumably has an NPV of $300 million. So, CQT should be worth at least $300 million, IF THE PROJECT WERE A CERTAINTY! What the Project NPV does NOT take into account is the probability of the Project proceeding and generating all that lovely cash flow!
Presumably the Project should proceed. BUT there's the small matter of $100 million that's required to make it happen! Therefore, when the Project is financed and therefore more certain, CQT's market cap should rise to approximate the Project NPV.
CQT Price at posting:
48.0¢ Sentiment: None Disclosure: Held