Possible Potential in two to three years., page-111

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Kyiapyoutoo

751 Posts.

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04/12/17

19:06

Post #: 29360993
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Originally posted by boy1 ↑

Andy,

Got to agree heavily here.

Sox we know the board are targeting 4mtpa.

Let me just lightly gloss over what that means for 1 years production ONLY, and ONLY on a spodumene operation, which has the lesser margin when compared to a carbonate/hydroxide operation which is the end game.

4mtpa = 780,000t spodumene at 6%
300 cash cost vs $1,000 USD sales price = 700m USD margin per tonne.
1 years operation = 546,000,000m USD cash profit.
In AUD that's $728,000,000...

Il let that sit in silence......

So whilst a pause is taken for that, apply a PE of 7 which is light on for a LOM of 20 in a bull market, and that's effectively 5 billion.

Divide that by 235m shares... that's $21 a share...

Now assume, say an RG outcome where 40/40/20 split with some JV partner and Mali Gov as a template and you get $8 per share....

$8 per share vs 50c

Conservative cash cost, conservative sales price, conservative operation (only spod not higher margin carbonate/hydroxide), conservative PE...

We really need to be talking multi dollars here.... that's why I heavily agree with your graph.

Spot on.

Expand

To all BGS-Shareholders, HotCopper-Members and to all who are interested in Lithium:

That was only the beginning.

The future for BGS is outstanding - a lot of positive News in front of the door.
The current MC is still ridiculous!

SP Target:
2017: A$ 1.00
2018: A$ 3.00
2019: A$ 8.00 (refers to the posting of boy1 - 100% confirmed)

Enjoy the coming weeks!

K.

BGS Price at posting: 56.0¢ Sentiment: Buy Disclosure: Held
44 Upvote

0 Great analysis

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Possible Potential in two to three years., page-111

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