Valuating LOM on foretasted producted 40,000 bcm, page-2

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Harm

599 Posts.

16/06/16

10:04

Post #: 18044006

Originally posted by calcrisktaker ↑

Since trolls have ruined the other threads i though it may be interesting for some to try to evaluate LOM based on the upcomming 40,000 bcm monthly production.

Cost is assumed at $60 USD (as mentioned during the AGM by the board)
Average value per bcm is $300 (as per values of bcm mentioned during the AGM by the board of each area)

This does not include any kimberlite upside

Column 1 Column 2

1 Average value of stones per bcm (USD) $300.00

2 Cost per bcm (USD) $60.00

3 Profit Per bcm (USD) $260.00

4 Profit Per bcm (AUD) (At current Forex rate) $350.00

5 Profit at 40,000 bcm per month (AUD) $14,000,000.00

6 Profit per financial year (AUD) $168,000,000.00

7 70% of profit going back to Lom until costs to date are recovered $117,600,000.00

8 40% of costs going back to Lom after cost are recovered $67,200,000.00

9 Earnings per share per annum based on 40% $0.21

10 Earnings per share per annum based on 70% $0.36

11 Current Price per earnings based on forcasted production. Based on 40% 1.68

12 Current Price per earnings based on forcasted production. Based on 70% 0.96

13 At ASX Shiller Price per earnings is 16.6 (Known as CAPE PE = 10 year average) market cap would be $1,115,520,000.00

14 At ASX Shiller P/E (CAPE PE) 16.6 share price would be (based on 40% share) $3.45

15 At ASX Shiller P/E (CAPE PE) 16.6 share price would be (based on 70% share) $6.04

16 At PE of 10 (Cheap) $2.08

17 Lucara Diamond Corp P/E is currently at 13.61

18 Gem Diamonds Limited P/E is currently at 5.35

All i see is upside for current mining. At 0.34 the share price seems very cheap to me. I am not expecting PE of 16 anytime soon but potential is there to see PE going up once we start processing 40,000 bcm per month

This is just for fun exercise and it would enjoy seeing other peoples forecast.

Please do not reply to trolls.

Expand

Why do you think the share price is sitting 600% below your valuation?

LOM Price at posting: 34.5¢ Sentiment: Hold Disclosure: Held

2 Upvote

0 Great analysis

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Valuating LOM on foretasted producted 40,000 bcm, page-2

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	Column 1	Column 2
1	Average value of stones per bcm (USD)	$300.00
2	Cost per bcm (USD)	$60.00
3	Profit Per bcm (USD)	$260.00
4	Profit Per bcm (AUD) (At current Forex rate)	$350.00
5	Profit at 40,000 bcm per month (AUD)	$14,000,000.00
6	Profit per financial year (AUD)	$168,000,000.00
7	70% of profit going back to Lom until costs to date are recovered	$117,600,000.00
8	40% of costs going back to Lom after cost are recovered	$67,200,000.00
9	Earnings per share per annum based on 40%	$0.21
10	Earnings per share per annum based on 70%	$0.36
11	Current Price per earnings based on forcasted production. Based on 40%	1.68
12	Current Price per earnings based on forcasted production. Based on 70%	0.96
13	At ASX Shiller Price per earnings is 16.6 (Known as CAPE PE = 10 year average) market cap would be	$1,115,520,000.00
14	At ASX Shiller P/E (CAPE PE) 16.6 share price would be (based on 40% share)	$3.45
15	At ASX Shiller P/E (CAPE PE) 16.6 share price would be (based on 70% share)	$6.04
16	At PE of 10 (Cheap)	$2.08
17	Lucara Diamond Corp P/E is currently at 13.61
18	Gem Diamonds Limited P/E is currently at 5.35

Valuating LOM on foretasted producted 40,000 bcm, page-2

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