What Croc and many others are yet to understand, the following slide is the forecast profit of Lindi Jumbo, based on the DFS figures.
It was only recently discovered this by talking to @Swimmer77
As we know, PE ratio is based on the profit of the project not on the EBITDA,
in the slide above it shows in 2021 WKT profit will be US$14mil = $20mil AUD or a MC of $100mil based on a PE of 5.
As Croc has pointed out in his tweet, WKT has high-grade graphite feed for the first few years, where the profit will be higher for 2022 until 2026, then the Profit significantly drops back down to US$12mil = $17.5mil = $87.5Mil MC (PE 5)
Thank you @Swimmer77 for pointing this out to me, with 60mil of options soon to be converted adding $20mil to the MC it seems like most of the WKT future value is already built into the current MC (based on a PE of 5).
I can understand why there are a few shareholders(23-25th Oct) happy to de-risk now before funding, dilution, building and commissioning all come over the next 2-3 years.
WKT Price at posting:
28.5¢ Sentiment: None Disclosure: Not Held
