independent valuation of luapula plant, page-30

@mrd83 ......"why would you read/ skim over 44 pages on a stock you do not own??"

Probably the most asked question on HC, across all threads on all stocks.

Simple answer is... Do you only read/study stocks you own?? or Do you buy stocks first then start reading about them??
The answer to both those questions is of course a resounding NO.
IMHO most investors that have been around for a few decades spend most of their time reading and studying stocks they don't own. The ones they own, they keep a good eye on, but they know when to sell or just hold.

I've spent plenty of time investigating this opportunity and I'm fascinated by the story. Today's report was easily the most in depth information revealed so so far, so yes I read every page of the report.

This evening in particular, people don't seem to want to discuss the NPV of the plant mentioned on p44. All conversations seem to lead away from that information why??

Let's look...
The NPV of the processing plant from WFE's own cash flow model was $US108M.
WFE will own 50% of the processing plant, so WFE's share of NPV = $US54M.

At current exchange rates $US54M = $A76M, a very interesting number considering that the Mcap of WFE after full dilution at 2.4c/sh would be around $A80M. (this excludes the EXTRA $US10M needed as per today's report)

Today's report basically stated there is no upside in WFE's share price based on the NPV of the companies OWN cash flow model IMHO.

On today's information, why would anyone buy shares at 2.4c or partake in the prospectus at that price, when the companies own cash flow model shows the fully diluted Mcap is above the NPV of the plant??

For upside you want the NPV to be well above current Mcap and near term fully diluted Mcap.

Love to see the arguments against the companies own numbers......