valuation

Bought a few more yesterday. Good value at this price.
Using figures from rights issue and placement presentation in May, I guess it's safe to assume PEV can get $100 per ton at mine gate net of mining cost. If it can produce and sell 100,000 tons a year that would be $10 million gross profit. What other cost do they incur? Head office, marketing? Deduct whatever extra cost you thing is appropriate, I say $1m, then we have a pre-tax profit projection of $9m. PE of 5? then share price should double from here. Mind you PEV represents much lower risk compared to other spec agri/fertilizer stocks like MAK or RWD. PEV has already started mining. Procuring and implementing the processing plant carry some risk but not significant as the processing plant is pretty simple. Competition? PEV's bentonite is of the highest quality so that risk should be easy to mitigate.

Once PEV starts to rake in revenues it can easily ramp up production. And there is no lack of POTENTIAL demand from various sectors: Malaysia palm oil refining, US drilling mud producer, Aussie farming sector, etc (according to May presentation).

To me, PEV is a lower risk agri/fertilizer stock with true potential, a hidden gem.