Short MNS - Paragon Fund Managers, page-53

No worries @Wiston Wolf.

Firstly, I commented that SYR have $M's in the bank, not MNS!

Dilution..... for CAPEX I have accounted for a 60/40 split (60% finance, 40% equity) with equity to be issued at $1 and the exchange rate being AUD/USD 0.75 The assumptions important here are that a deal such as that with Rosatom becomes binding and generates a SP lift that will make issuing equity at $1 easy. Finance may partly or wholly come from Rosatom but I imagine a syndicate will be involved considering the sum of money to be lent. Finance will obviously require preceding off-takes.

It is great news that Magnis appears close to finding a home for some or all of its jumbo and SJ flake as this brings considerable revenue while OPEX remains relatively fixed i.e. better margin than battery feedstock. Also, I have not accounted for any upside that may come from the aprox. 30% increased profitability in the battery feedstock component if it were to be sold as uncoated spherical rather than just as raw flake.

Important for SP predictions is the PE ratio one uses. I have used a ratio of 10 but consider that this is modest in light of the ASX200 mining sector average being 14. Of course, any hint of being a technology company attracts a much higher ratio!

Yes, I see SYR as still overvalued because eventually cash in the bank will run out and then, owing to their poor quality product, they will have little ability to generate meaningful cash flow and therefore their current SP can not be maintained.

Therefore, I am confident investing in Magnis and see that a SP of $6 is very possible in a few short years if realistic milestones are achieved. Also, $2 for SYR is IMO generous.