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22/07/11
15:50
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Slats
Do you think high school maths students could do the exercise below?
Imagine generous case scenario:
1. 35mtpa
2. opex $22/t
3. revenue $152/t
4. 100% debt financing @ 7.5% interest
5. depreciation over 25 years
6. Capex $5b
7. tax = 30%
8. royalty = 5% (excluded)
questions:
1. how much profit per annum?
A: 35m x $130 - $200m depr - $375m interest x 30% tax x 90% project share = $2,500m net profit per annum
2. how much is the earnings per share (EPS)?
A: $2.5b divided by 3b shares = 84 cents
3. what is the share price on a generous PE ratio of 14?
A: $12
5. can SDL be a 100 bagger?
A: no
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