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Troydt

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10/10/18

15:53

Post #: 36070633
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Originally posted by tonethegroan ↑

Yes, to a degree Largo's current cash flow is being negatively effected by legacy contracts, yet they earned US$80m of free cash in the most recent quarter. That will definitely grow substantially as spot V prices make their mark....and of course, the market knows this and it is priced in the current share price.

In the short term the V price I believe will push well through the $50/lb level (I hear there is real panic out there - China could ban V exports!!). It will be a little like when Ur went on it's tear from $5/lb to over $100. But that will be a massive headwind for the VRB market and development of that market may have to wait until the supply side of the equation has come to the party - but that could take 5 years at least. In the mean time the V price will steadfastly stay above $25 IMO.

If the V price is above $20 in mid-2021 (as I suspect) then we should have the same market cap as Largo (why wouldn't we?).

Lets say the project is financed 33% debt, equity and off take partner contribution (who knows? just guessing) and the equity funding portion is raised at say $1/share (minimum) with $130m raised that would mean we would have (83m + 130m) say 213m share on issue.

Using a Largo mkt cap of say $2bn, TMT's share price would be $8.65.

I personally think Largo share price has massive upside from here despite it's run this year. Just imagine.....

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Can someone change this thread name "time to breakdown"

Comments on volume and SP?

This is getting ridiculous

TMT Price at posting: 45.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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Time to breakout, page-1698

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