Some pretty rough figures to throw out there...I know there have...

Some pretty rough figures to throw out there...

I know there have been a few calculations like this in the past on this thread, but in light of just released figures, here we go...

A prediction of future SP potential:

Current shares on isssue 44.5mill
Current options on issue 16.7mill
So fully diluted, we have 61.2mill

The presentation details a 50:50 debt/equity split to finance the $120mill project. So lets say they manage to raise $60 mill by issuing 75mill new shares at 80c.

So we have a final dilution of say 135mill.

On earnings of $26mill, this would equate to an EPS of 19c. (26/136)

Now to get to a possible share price, lets use a PE of say 15 (Mid range for the industry).

So that is 15 x 19c = $2.89 per share

Which is around 3.5x the current SP

Further upside with :
- The plant output and therefore earnings have potential to double
- We have a figure for transport costs, and the project is viable
- 100 year project life
- no sovereign risk (ala spec. U plays)
- more potash exploration projects on the board
- potential spin offs of non potash projects
- some extra cash flow with oppie conversions (they are all in the money)
- tight registry (Top 20 have 65%)(Directors have 54%)

Any some of more thoughts..