forecasts

If my calculations are right, this represents an extra-ordinary market opportunity. I would have liked to have seen proof of sales and opex figures before investing, but the investment case was too strong for me.

***Based on company forecasts:
Chromite- 95000t
Zircon- 5000t
Ilmenite- 27000t

Using figures of Chr- 500, Zircon 1650 and Ilmenite 150 (all conservative figures), you get:

Revenue: 60million

Company costs of:
-3.5m payroll
-4m for goods and services
-8m mining and hauling (high estimate allowing for cost blowout)
= 15.5m opex

Even allowing for 100% opex blowout (which is pretty unlikely), you still get an operating cashflow of 30m, and NPAT of ~20million AUD using 30% corporate tax.

Using a 10% RR gives an EV of some 200million. With cash of ?10million- a valuation of 0.40.

The upside is:
- no operating cost blowouts
- higher mineral sands prices

and looking into the future:
- increased production
- ferrochrome production

I have loaded up already, and will heavily load up more as soon as I have proof that these are the numbers we will be looking at.