HVY 19.1% 12.5¢ heavy minerals limited

Price Action, page-9

  1. 551 Posts.
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    Looking for opinions on a comparative company to get an idea on a fair mc for hvy once we are producing.
    Is it RDG? Is it as simple as that?
    They are nearby, grades are comparable, if RH comes through we will have a similarly sized resource.....
    Whilst RDG does have some other revenue streams my understanding is that they are a relatively small percentage when compared to its Garnett operation.
    Could we argue that on the assumption that our resource and grade will be the same (discounted against HVY as I believe we will be bigger and better) and throw in a 10% discount based on RDG's other revenue that we should fairly be valued at 90% of RDG (approx 180M mc today) once we are producing?
    I appreciate this is a very simplistic approach to a mc and that supply/demand, world events, technology etc will change over the next 3-5 years however I don't see why it is not a likely scenario.
    Would love to hear of other comparable companies and thoughts on my opinion.
 
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