James Marsh has said that ADN will go it alone on HPA. The only benefit to MEP will be if ADN chooses to use Great White kaolin.
Let's have a look at another Wombat777 spreadsheet - an update incorporating the paints & coatings BOA - showing numbers for ADN.
https://hotcopper.com.au/threads/ann-significant-binding-offtake-agreement-signed-for-great-white.6104312/page-362?get_post=true
We can quibble about a few things to do with AISC, CAPEX, interest expense etc but the numbers aren't going to be much different to what's below. MEP will probably pay ADN a small management fee for marketing etc but it's all in the rough numbers.
The really positive thing for MEP is projected EPS of ~3.7c. At a share price of 13c that's a PE of 3.5!
Would you be happy to pay that for first earnings in FY23? (FY22 starts in <3 weeks!) MEP is a BARGAIN!
Assuming a PE of 20, based on 2nd half FY23 earnings i.e. a full six months of Phase 1 production of 116kt showing a smoothly running plant and quarrying operation, gives a target price of 75c. Not bad for less than three years time, 6x Friday's close of 13c!
BUY BUY BUY!
- Forums
- ASX - By Stock
- MEP
- MEP or ADN
MEP or ADN, page-1434
-
- There are more pages in this discussion • 29 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)