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1,201 Posts.
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13/11/07
01:19
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if we dont DOUBLE capital and simply add another 50mill shares, with long term price 70USD and 3 mill proddy we get:
80AUD price - 48AUD costs = 32AUD per tonne
32 * 3mill tonnes = 96
after tax: 67
adding 50mill shares to equity, EPS is 67/135 = 0.496
or
50cps
5mill proddy we get : 32AUD * 5 = 160
after tax: 112
112/135 = 0.83 or 83 cents per share
so this the is MORE REALISTIC SCENARIO
I reckon shares worth AT LEAST 4-5 bucks, or if you use a PE of 10, $5 to $8.30 to be exact!
And this is using 70usd. Spot price is like almost double that!
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