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18/07/08
11:49
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Does anybody know the profit (or loss) & op cash flow levels Zinifex would be at if zinc stays at these levels.
I will do some analysis over the weekend however would appreciate if someone has the numbers.
When the deal was announced they said the group would have opertaing cashflow of $1.3Billion a year when PH comes on line.
At a current $6B market cap less say $1B in net cash OXR is valued at $5B which equates to 3.8 years cashflow.
This is incredibly cheap. Takeover would normally be at 8 x plus up to 10 -12 times. ie minumin double.
I am trying to calculate what the net cashflow would be now at current zinc prices. Perhaps $200M less? Even so still incredibly cheap.
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