my valuation 35millcapex costs similar to mgx, page-4

So what about the broker valuation of $2.82 when IO was $83 a ton?

OK....here's a rosier scenario.

I would hope to see a year or two of DSO production at $100 margin...(150 sell/50 cost) to generate EBIT of $200M @ 2MT per annum.

If PLV could achieve anything close to this then they would be able to keep the shares on issue pretty close to what it is now......use profits to fund Stage 2 with a bit of short-term debt of $100M or so.

The Stage 2 production costs would presumably be higher with beneficiation involved, but do we know how much?

Let's say $80 a ton.....or $70 average between the DSO and Stage 2.....(I'm guessing) and sale price of $150=.

That's an $80 margin on maybe 10MT per annum......$800M before tax.

Divided by say, 250M shares.

NPAT $2= a share.....

PE 10= $20 a share.


I think your valuation is too low, and I'm probably a bit too optimistic......and the reality is probably somewhere between $5 to $10 depending on long term IO prices.