Ann: Full Year Results Presentation, page-8

First 8 Last

Share
Profile

Follow
Autosime

15,774 Posts.

268

29/08/18

12:40

Post #: 35263424
Share

Originally posted by Jimmy_C ↑

Is it genuinely and definitely cheap at 22c, though? I don't think it is - PRT's earnings are going backward at such a breakneck speed that it's impossible to know what cash flows to equity will be from here. That's been my issue for the last 18 months.

The way i see it, they've got $15m net debt, plus they need to pay the $15m upfront affiliation fee (which i don't think appears in the FY18 accounts as the deal was closed 20 August); so, PRT today is effectively $30m in net debt. That's 2-2.5 years' NPAT on FY19 $12-15m guidance, but we know FY20 is likely to be worse than FY19 due to another step-up in affiliation fees. If NPAT steps down to, say, $10m in FY20, then PRT is not going to pay a dividend until FY21 at the earliest. So, if you were to do a reasonable DCF (equity) of PRT from here, i'd say:

- Nil cash flow until FY21
- FY21 close to 100% dividend payout; NPAT maybe starts in FY21 at $10m but continues to decline
- Run-off to zero over 5-10 year period; no terminal value
- Applying a 15% discount rate to that and you won't get anywhere near $0.22.

I actually think PRT is worth $0.12-$0.14 based on my view of the industry and the terms of their updated affiliation agreement.

Expand

I continue to feel there is a value that should be allocated for corporate action as the synergies that would come from this make it much more attractive st the current price.

PRT Price at posting: 21.5¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

ME1

Banshee's historic trenches prove rich in antimony and gold for GDM

LYN

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

BNL

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

AUN

Cyclone signs MOU with Vale for development of Iron Bear play

EDE

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

HotCopper Highlights: Your most watched stocks for Week 46, 2024

AN1

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

There are more pages in this discussion • 35 more messages in this thread...

First 8 Last

Add PRT (ASX) to my watchlist

Ann: Full Year Results Presentation, page-8

Top Stories

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Banshee's historic trenches prove rich in antimony and gold for GDM

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

Cyclone signs MOU with Vale for development of Iron Bear play

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

HotCopper Highlights: Your most watched stocks for Week 46, 2024

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks