Let's try a valuation

This is all my opinion, and others may have a better knowledge, but it's meant purely as a discussion starter

http://wap.business-standard.com/ar...t-projects-of-rs-5-328-cr-115053000857_1.html

From the NLC press release, we can see that NLC have given approval to develop 2 new lignite mines and power stations. Given Mr Modi's attitude, they certainly won't be the dirty lignite burning power stations that we have in Australia. They will need to employ something like ESI technology.

We see from the article that one mine will be 2.25 million tpa, and one will be 1.9 million tpa - a total of 4.15 million tpa.

If ESI even negotiate a measly $5 per tonne technology toll, that will be an income of over $200 million per year, which would be mainly profit. In reality, the toll figure could be as high as $10 per tonne, or an income of $400 mill pa.

Now to convert that to a SP.  For a growth company like ESI a PE of over 20, or even 25, would not be unreasonable. But to be conservative, let's assume a PE of 15, which is around the ASX top 100 average.  That could easily equate to a market cap of $600 million, or a SP well north of 20c

And that's just for the proposed 2 mines.

Other mines?

Matmor?

You can see the absolutely huge potential here.

It's going to be massive