independent valuation of luapula plant, page-64

If the NPV of the project plant is US$108m, then how do you get to the position where WFE will be earning US$54-$76m pa from which you then run a PE multiple of 10 to get a massive uplift in market cap??

The NPV of US$108m is the net present value of the future earnings of the plant based on WFE's assumptions. If the future earnings were over 5 years, that's circa US$22m/pa or if it's over 10 years, then that's only circa US$11m/pa, so a PE x 10 will get you a MC of US$110m-US$220m.

You're also assuming that the appropriate valuation methodology for this type operation is a PE multiple of 10 based on current year earnings. However, the appropriate earnings multiple is actually a factor of what period the company can reasonably be expected to continue to earn income at that rate. Something that will likely impact on the PE multiple in this instance is the volatility of the Co price.

I can tell you, if this was an unlisted company, it would likely only be valued at a PE of 3-5.

Now you can look through my post history here and see that I'm rather bullish on WFE, but sometimes I feel it's necessary to reign back some of the more outlandish statements.