2020 Low Pricing Case: 240,000t SC6 per AMAL forecast. AU$550/t cost (net of tant credits). AU$960/t lowest sale price (US$680/t). Profit from mining: AU$98.4M 8x multiplier is a market cap of $787M (more than 3x the current share price --> $0.60/share).
2020 Mid Pricing + 15% Above Nameplate Case: 280,000t SC6. AU$550/t cost (net of tant credits). AU$1,130/t sale price (~US$800/t). Profit from mining: AU$164.2M 8x multiplier is a market cap of $1.3B (more than 5x the current share price --> $1/share)
High pricing (US$1,000+) case pushing towards $1.5/share if costs are maintained (although unlikely high side pricing in 2020). Even with some profit used for more exploration/resource drilling, some corporate costs, etc. etc. there is still a nice profit to be captured provided costs are controlled as per forecast.
Wake me up in 2 years... By then it will be a choice of 2 D's: - DMS2. - Dividends.
A40 Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
