If we take from THR's half yearly report to 31 Dec 06 the potential production of 100,000 mtu of tungsten and 1,000,000 lbs of Mo pa and adjust upwards the cash flow EBIT to employ today's metal prices, we find an EBIT of $A200 million employing a mine life of only 4 years; but now $250 million over 5 years allowing for the recent increase in ore reserves. This is an average of $50 million pa or 25 cents per share for the 200 million shares after options convert. Production is due to commence first half 2008.
This will internally fund the uranium exploration programme due to commence drilling by mid April 2007.
At 35 cents per share. THR sells at 1.4 X EBIT
Add to My Watchlist
What is My Watchlist?
