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21:13
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Originally posted by BigJohn1:
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This may help, the market capitalisation or enterprise value. Additionally, I'll assume you're referring to the Price-to-Earnings (PE) ratio of 10, which is a common metric used to estimate the SP.Given the provided data, let's break down the calculation steps:1. Estimate the annual revenue: - Resource: 503mt - Mine life: 91 years - Annual production: 503mt / 91 years ≈ 5.53mt per annum (assuming a constant production rate) - Revenue: 5.53mt per annum * $150/ton (premium price) ≈ $828 million per annum2. Estimate the annual operating profit (EBIT): - Revenue: $828 million per annum - OPEX (best case): $46/ton * 5.53mt per annum ≈ $254.78 million per annum - EBIT (best case): $828 million - $254.78 million ≈ $573.22 million per annum3. Estimate the net profit (NP): - Assuming a tax rate of 30% (this might vary depending on the jurisdiction) - NP (best case): $573.22 million * (1 - 0.30) ≈ $401.85 million per annum4. Calculate the Price-to-Earnings (PE) ratio: - PE ratio: 10 (given)5. Estimate the Security Price (SP): - SP = NP * PE ratio / Total shares outstanding - SP (best case) ≈ $401.85 million * 10 / 77 million shares ≈ $52.30 per sharePlease note that this calculation is a simplified estimate and might not reflect the actual Security Price. Factors like market conditions, risk, and other variables can influence the actual price. Additionally, the calculation assumes a constant production rate, which might not be the case in reality.Keep in mind that this is a rough estimate and should be taken as a starting point for further analysis.
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ok your calculations are somewhat close to mine. Even if we applied a 50% discount, that's $10-20. My child is sorted in 10 years just in time for University. See you on the other side Big John.
