XAO 0.60% 8,535.4 all ordinaries

It was said with aspirational hopefulness borne out of the...

  1. 1,866 Posts.
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    It was said with aspirational hopefulness borne out of the wistful thought that good will triumph over evil.

    PSC (what is it, +13% over the last two days?) and BGS seem to be in similar positions, and that is - undervalued. The sheer maths of the BGS operation will overcome any negative sentiment shortly. It just has to. With the recently announced 47% cost reduction, the NPV10 - as calculated by some people far more astute than me - is quite off the chart.

    Here's the link (thanks @john_utah) and a short summary:

    1) Previous PFS, NPV10 is: $142M | Operating Cashflow: $726M | EBIT: $555M
    2) Recently revised figures - inc cost reductions, NPV10: $317M | OC: $1B | E: $852M
    3) If the new PFS doubles the resource size, NPV10: $503M | OC: $2B | E: $1.8B

    So, even if the new PFS increases the resource, by say.. 25% you are still coming out well in front. And for a MC of, what is it.. $116M, it's really got a long way to go before it even gets close to it's (somewhat overvalued) peers.

    *Obviously a bunch of assumptions with all the data, but even if the maths is a bit out, it's all really quite positive.

    Ok. Actually just more fascinated in it really, but enough ramping from me on this one.. Other opinions welcome.
    Last edited by lifeguard22: 21/03/18
 
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