Using your NPV, I extrapolate the following target SP:
NPV / Mine Life = Profit p.a.
(FCF / SOI) = EPS
EPS * P/E 10 = target share price
165M / 8yr = $20.7M p.a.
$20.7M / 489M = 0.042
0.042 * 10 =
0.42c
That look right?
Silly question - does an NPV take into account tax (did yours?)?
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My back of the napkin valuation back in Feb looked like this:
https://hotcopper.com.au/threads/go....4055440/page-2?post_id=31474876#.Wz7f6aczYuU
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
Column 6 |
1 |
|
Free cashflow per annum |
Earnings after tax (30% corporate rate) |
Shares on issue |
Earnings per share |
Price to earnings multplier (9) |
2 |
|
A$M |
A$M |
M |
$ |
$ |
3 |
EAR |
60 |
42 |
489 |
0.09 |
0.69 |