'Allowing 10 months of the year at full production, $30k tonne tungsten price then revenue of $90m from the mine. Lets say that is halved based on the above comment then $45m per year revenue in $USD, so at current conversion $60m AUS. (throw in some more for the JV and quarry, but let's stick with $60m)
Based on previous NPV report and recent resource upgrade I am thinking that there's less digging involved now so les processing and less costs etc. As a result assume operating costs equate to half the revenue number (I'd expect it to be less but all I know about tungsten has been learned from Hotcopper) So profit say $22.5-$25m per year.
Divide that by shares on market (call it 1.4 billion once notes converted, options etc) then 1.8cents profit per share. If 4-6% is a good dividend yield then at 5% yield we have a 36 cent share (if you choose yield as means of valuation)'
Happy with that ? Also a black cat crossed my path while walking under a ladder across a broken mirror on Friday the 13th and nothing happened - so I figure I have luck on my side as well.
EQR Price at posting:
6.5¢ Sentiment: Buy Disclosure: Held
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