BRM 0.00% $2.53 brockman resources limited

once in proddy i get 17bucks value using pe 10

  1. 1,194 Posts.
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    doesnt matter what happens to stock market

    I truly believe that wayne richards is serious and isnt a bullshit artist like half these wannabes

    if they produce 10 mill tonnes a year, the EPS will be mind-blowing, and I think the margins will look good despite any tapering off in IO prices post 2010. With 10mill proddy a year theyll have econimies of (large) scale proddy.

    CAPEX is gonna be low, but even if theres dilution of an extra 100mill shares, if u assume price is 80USD and ALL costs 50AUD, thats say 35AUD/t net revenue, or 350million bucks Net profit on 10 mill proddy

    Assumming 200million shares + option :

    EPS is 350mill/200mill = $1.75 EPS

    give a PE of 10 and you get $17.50!!!!!

    thats assumming 80USD price of course over time and TOTAL costsof 50AUD/tonne and 200million shares

    ***Even if IO price goes back to say 60USD and the long term AUD:USD is say 85 or $1.18 aussie dollar buying 1 USD

    revenue is 60USD * 1.18 =70AUD

    70-50AUD costs per tonne = 20 AUD net revenue per tonne

    20* 10mill tonnes = 200mill

    200mill/200mill capital =

    $1 per share EPS

    using PE of 10, you get $10 per share!

    ********* So IF they produce, and I think Wayne Richards will take them to production, youre looking at minimum $10 per share!!!!

    thats minimum coz you can easily use a PE of 10 if theres 50-100 years of production!!!

    What would a discounted cash flow NPV be worth if they produce 10mill tonnes per year for say 50-100 years ;)!!!!!

    In a NPV case over that many years, and with so few shares, the NPV/share would be MONSTROUS!

    I guess bcoz theres so much years of proddy , if youre using PE analysis, youd have to use a HIGH PE. (higher than 10)

    NPV is better , and i wonder what the NPV would be. Very difficult to do NOV over soooooo many years tho. Who knows whats gonna happen in 50 years???


    Im an idiot, i sold half my SMALL stake coz the market freaked me out. Thanking god i still kept the other half! But its such a small amount, that its just brought a smile to my face as opposed ot some here whom have jumped for the moon on the news.

    Will never sell my small portion

    theyll be in production INO. WR will take us there!
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