Thought I would share my target share price for CFE
Target Share price CFE – 27/06/17
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
| 1 |
Cobalt Price US $ pt / Production tpa
|
3000
|
3500
|
4000
|
4500
|
| 2 |
50,000
|
0.086
|
0.101
|
0.115
|
0.130
|
| 3 |
55,000
|
0.099
|
0.115
|
0.132
|
0.148
|
| 4 |
60,000
|
0.111
|
0.130
|
0.148
|
0.167
|
| 5 |
65,000
|
0.123
|
0.144
|
0.164
|
0.185
|
| 6 |
70,000
|
0.136
|
0.158
|
0.181
|
0.204
|
| 7 |
75,000
|
0.148
|
0.173
|
0.197
|
0.222
|
| 8 |
80,000
|
0.160
|
0.187
|
0.214
|
0.241
|
| 9 |
85,000
|
0.173
|
0.201
|
0.230
|
0.259
|
Share price forecasts assume US AU exchange rate of .75
Calculations have been made assuming a 50% earn to CFE based on their JV agreement
A conservative price to earnings multiple of 3.5 x has been used and represents significant upside should the market value at a higher multiple.
Calculations assume a AISC of US $15000 / Tonne
Based on this I am looking to achieve a 16.4 cent SP by Dec 31st. Significant upside still remains if Cobalt pushes past US $65,000 pt or if we experience a significant drop in the $AU. For every rise in the Cobalt price of $US 10,000 pt then a rise in the SP of about 3 cents can be expected
WCS if Cobalt retreats to $US 55,000 pt and the JV operators are only able to achieve a 3000 tpa output a share price of 8.6 cents still remains possible
GLTAH IMHO
Have a great week all!!!!
