The public is left with approx 16.75% of a project which ORD...

The public is left with approx 16.75% of a project which ORD has.

Forget talking about things that we don't own or control and focus on ORD and what ORD will have or you will simply get confused.

If we are going to focus on the listing which is what we should focus on to start with then ORD's value of that is

$33,500,000 which is 16.75% of that

AND

then work out an NPV for production.

Here are some production figures for SARCO once in production:-


-Opex $250 per t Alumina

-Aluminium price of $2,600t and Alumina price approximately 14% of this (using historical prices)

Initial production at 600,000tpa

This comes to an EBITDA of $68,400,000

ORD will receive approx 16.75% of that.

Now what does that come to????

16.75% of that figure means that ORD receives $11,457,000 EBITDA Per annum.

Now give it a P/E of 4 which is reasonable at this stage of the project and the NPV for ORD is $45,828,000

Total NPV = $79,328,000 or 16.7 cents per share.

I sort of think that 14cents per share for LAOS is too low wouldn't you say???

Then ramp up will be to 1.2 MTPA which is double that.