Some 'back of the napkin' calcs, re GGG SP: From:...

Some 'back of the napkin' calcs, re GGG SP:

From: http://www.*.com.au/companies/news/...-in-rare-earth-concentrate-grades-195097.html

Project financing costs are US$831.9 million with a payback period of 5 years.

$AUD 1,127,180,000 / 5

=$225,436,000 earnings/yr

1,315,274,686 shares/options/rights issued

EPS = $0.171398

From www.investsmart.com.au:

P/E
ASX 16.70
Sector 13.90
BHP 14.70

So, assuming a P/E of arounf 15,

Projected GGG SP $2.52

Potential influences:

- share dilution: would they need to give up %50 for financing? More?
- 20% of holdings explored = massive potential upside
- u308 price at historic lows but seems to be recovering, with increasing demand projected
- car fleets in various countries going electric = +ve REE demand
- project financials to get massive shot in the arm with improved concentrate grades, reduced capex and operating costs

Given the potential upside, $2.52 seems to be a conservative estimate.

Does anyone still believe this project is not going to happen?

Look forward to thoughts of some wise(er?) investors. Any corrections on above assumptions appreciated.