VIDEO: VR8 gives update on Steelpoortdrift development, page-115

The above screenshot is from the recent presentation slides. So I will assume that VR8 will fund 40% of initial CAPEX through issue of shares.

Initial CAPEX is USD $200m but they only need to cover 73.95% of this. So this will become USD $147.9m / AUD $199.3m.

40% of this will be equity funded. So this will be AUD $79.7m.
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I will be conservative and assume the share price only reaches 20 cents by the time funding is required. I will also assume they raise AUD $100m so they have some spare cash to fund operating costs.

100m / 20cent = 500m shares.

If we add the current SOI of 473m, total SOI will become 973m.
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Now time for profit. This part I am not confident with so it is just a guess. Lets assume VR8 will make AUD $150m NPAT per annum. This is roughly half of forecasted annual EBITDA.

PE ratio = 10
SOI = 973m
NPAT = 150m
Share price = x

10 = x / 0.154
x = $1.54

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Share Price forecast = $1.54
So the share price could reach $1.54 by 2025. Plenty of upside if all goes to plan.


(if someone understands the profit better please feel free to adjust the NPAT figure in my calculation and share it with us)