Agree - the price forecasts look to be conservative. However, the Anak cash flow to fund the PCI development has proven to be very much optimistic. Also, depending on the conditions and milestones under which profit share is considered, and what upfront capital is ultimately agreed upon, the valuation can move either way. Also need to account for the placement and levels of existing shareholder dilution.
I guess these are things we can look forward to. Hopefully we have these details before the long weekend or it's going to be a very stressful time at the Easter Show..
I did put together an excellent cashflow model for Cokal previously, ultimately a 16 cents share price based on historical long-term FX rates, average PCI forecasts and HCC of AME, CRU and Woodmac and reasonable time before BBM commences post PCI. I think I took guidance from the low-value research report they commissioned when determining the BBM start year. I should update this with a 50% profit share and 15 mill upfront cash investment and see what share price we get instead. Might spend half the work day tomorrow looking into this
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