Quickthinker....if that's how you research and breakdown value...

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30/04/21

03:39

Post #: 52829043
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Originally posted by quickthinker: ↑

$93 million cap for 257.3 million shares including options
0.375 minus 10% = 33 cents/ share @ capital raise with discounted offer.
$630 million needed plus management bills and current overheads for 2.5 years construction period
$630 million plus 5 million = $635 million

635 million divided by 33 cents = 1.924 Billion shares plus the current 257.3 million on issue = 2.18 Billion shares at current evaluations.
I would buy these shares but they are way overpriced today.
if you produce 3700 tons per annum at $25/pound
The case study is $10 cost price per pound
so $15 so $15 profit/ pound.
2200 metric pounds x 3700 tons = 8 140 000 pounds
multiplied by $15 USA = $122 100 000 USA/ annum
.122 x 1.3 exchange rate today = $158 730 000 au dollars.
158 730 000 divided by 2.18 Billion shares is the earnings of 7.5 cents/share/ annum
The numbers don’t look that bad but to get those earnings would project a 3 to 5 year period ahead.
A good investor should at least double their investment every 5 years as a rule of thumb so discount the 7.5 cents to 3.75 cents if I invested today and only received a return in 5 years time..
Given a multiple of earnings of 10 for this industry....
That would place the share price at 37.5 cents/ share
Why would I invest at a 5 year projected share price
rate today? 20 cents/ share would be fair value today.
Unless management comes up with a better solution
going forward....

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Quickthinker....if that's how you research and breakdown value then you had better not invest in COB. Move on to another share I would suggest.
CAPEX for the mine and plant is $550M AUD
no capital raise. The strategy is to find an equity partner as part of the offtake agreement

COB Price at posting: 37.5¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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