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That is some serious upside there @wombat777

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Davisite

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15/02/19

12:19

Post #: 37448835
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Originally posted by wombat777 ↑

DYOR. Not Advice.
Targets presented below are based on my research and calculations. You are encouraged to DYOR and make your own decisions.

Now ... a bit of speculation. There is thought that they may be able to run the plant at 200% of nameplate. See this for some background.

https://hotcopper.com.au/threads/an...oduction-target-upgrade.4633679/#.XGX6n-IzY6g

So speculating on two scenarios ...

Running the plant at 150% of nameplate

Running the plant at 200% of nameplate

So if we look at the results on a P/E of 10.0 ( ASX average is 15.0 ), that gives us a range of $3.39 to $4.44. This would be cash ( net profit after tax ) of AUD $50M to AUD $66M.

If they can achieve this they will probably be able to pay back all debt in under 12 months, however the smart thing to do would be to spend 20% of the cash ( AUD $10M to AUD $13.2M ) cranking up exploration in all that prospective ground along the shear. They already have promising drill targets from drilling they have already done (see below).

View attachment 1446837

The following are from the investor presentation:
https://www.asx.com.au/asxpdf/20190212/pdf/442k7vvvsyw5w6.pdf

View attachment 1446847
View attachment 1446845

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That is some serious upside there @wombat777
EGA Price at posting: 25.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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