FLC Market Cap

Hi all

Sometimes when you look at something too closely, you don't quite see the bigger picture.

The daily market depth may be good for short term trading, but I have always believed that for a long term investment you need to look beyond the market depth. The current market price is not why I choose to buy or sell a stock, it is simply the price I can pay for something that I attribute a certain value to.

To this point, we should really be paying a lot more for FLC than 36 cents.

There is no better way to highlight this than to look at the market cap today compared to just 6 months ago.

In August 2018, A$196m market cap (436m shares on issue and s/p @ 45 cents).

Since then:
- 23 Aug 18; US$48m San Quinitn desal plant finalised, for 22,000 cubic metres. Including O&M contract for US$10m/pa for 30 years.
- 12 October 2018; US$45m Aspiral iTEST agreement signed (35 units shipped in Dec18)
- 18 October 2018; US$7.6m Nirobox Egypt  - Ministry of Housing (12,000 cubic metres). Including undisclosed O&M contract.
- 26 November 2018; US$36.5m capitail injection @ 37 cents
- 27 Feb 2019; EUR 165m / US$188m Ivory Coast contract - O&M contract to be tendered, in the box seat. My est. at least US$20m a year.

In March 2019, A$193.5m market cap (537.4m shares on issue and s/p @ 36 cents).

FLC is worth less today than before we secured San Quintin, our first China Aspiral bulk order, our largest even Nirobox order, US$36.5m cash injection, and the massive US$188m Ivory Coast contract.

The significance of the above contract wins can actually be measured, and if you simply layer them out based on their contract terms you will see that after the Ivory Coast contract was won, at a minimum we will have already secured 60%+ of our FY18 revenue, over 100%+ of our FY18 revenue for FY20 and FY21.

I've taken the opportunity to personally top-up over the past week as it simply looks too damn cheap at the moment.