APG seems to have a fantastic suite of technologies but are having a great deal of trouble successfully commercialising them. I understand that they have a demo plant that is working well and will get some +ve cash flow in the next 6-12 months.
They currently have a market cap of 28 million which seems cheap but as said cash flow is king in this market. If they can generate $7 mill per annum on the current plant and have an EBIT multiple of say 7 that would indicate a sp of around 7c not taking into account the recent cap raising.
So taking into account the potential for an upgrade to a 60MTPA plant it seems to be conceivable that the sp could head well north of 20c if things fall into place. The problem seems to be that the track record for this company is technology driven and not deal driven which is what the market seems to want.
I see BHP are involved which one would suppose is a good thing. I have some cash to invest atm but I am struggling to determine if APG can deliver.
APG Price at posting:
3.7¢ Sentiment: None Disclosure: Not Held
