stringtickler,
The upward price pressure will start well before production,as you have said,but the actual re-rating will occur near the time of first production.
By re-rating,I mean valuing the Company on a P/E multiple of future net profit.The Company's expected net profit is somewhere around $50 Million per annum.
At a P/E of 10 that would value the Company at $500 Million
At a P/E of 20 that would value the Company at $1 Billion
and so forth.
You can come up with your own P/E multiple that you are comfortable with.
Those future potential share prices are long way higher than they are now!
Cheers
- Forums
- ASX - By Stock
- what on earth does gxy owe creat group?
stringtickler,The upward price pressure will start well before...
-
- There are more pages in this discussion • 10 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)