#HMI's plant started commercial operations in July 2018 - with sales only really picking up in Dec. In the six months to end Dec 2018, it generated AU$1.05m. In the 12m ended June 2019, it generated AU$1.63m - so AU$0.58m in H1 2019.
In the TU yesterday, mgmt stated that in..1/4
In the TU yesterday, mgmt stated that in..1/4
...the ~13m to end Dec 2019, #HMI will have sold 50kt - which at US$50/t will sell for ~US$2.5m.
USD:AUD is 1.47. So mgmt is stating that it’ll generate ~AU$3.68m in the 13m to end Dec 2019.
That equates to over AU$2m in H2 2019 - which is 100% YoY top line growth. 2/4
USD:AUD is 1.47. So mgmt is stating that it’ll generate ~AU$3.68m in the 13m to end Dec 2019.
That equates to over AU$2m in H2 2019 - which is 100% YoY top line growth. 2/4
I’d expect that growth to continue as #HMI's KPFértil snowballs. If 100% YoY growth is achieved in CY 2020, that US$5m will equate to PAT of £1m-£1.2m - a ~7x PER.
That’s at only 29% of nameplate capacity. That 320ktpa capacity can be doubled for negligible additional capex. 3/4
That’s at only 29% of nameplate capacity. That 320ktpa capacity can be doubled for negligible additional capex. 3/4
Sustaining capex will be sub AU$0.4m pa. Thus #HMI dividends are a reality for end CY 2021, possibly earlier if 100% top line growth is surpassed next year.
If nameplate is achieved in the next 5 years, the annual divi could make up a serious chunk of the current SP of 4.2p. 4/4
If nameplate is achieved in the next 5 years, the annual divi could make up a serious chunk of the current SP of 4.2p. 4/4
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