trying to value gxy

Using the no. of shares currently on issue (I know this will change soon) of 584,355,501 if GXY can make a $25M profit from the plant the eps is 4.28c. On a P/E of 10 that equates to 42.8c. Of course this ignores the issues of cash flow, high debt, but also doesn't include the blue sky potential of SdV, and the assetts of Mt Cattlin (yes everyone there are 2 t's) and James Bay. If they increased the register to 1 billion shares on issue - at the same time arresting a chunk of debt - then eps becomes 2.5c and on a P/E of 10 a valuation of 25c per share. You would only short GXY under 25c if you think they are going broke. I don't.

Now SdV has a potentially higher throughput of Li3CO2 at a lower COP (brine is cheaper to convert plus the potash sales) - so if we ever have both up and running then look for a $ in front of the sp.

NB: I'm assuming GXY can produce at 100% ramp up of 17kt per annum and have generously allowed for interest costs and management costs to be low. I wish I had all the financials but I don't.

If anyone can improve on a valuation please be my guest.