Frustrating to see @Afritin_Mining trade underwater, ~5.2p average.
Tin pushing to record highs again, yet #ATM flounders 25% below the recent £13m placing at 6.0p.
Phase 1 Expansion at the Uis Mine in Namibia completes mid next year. This will be transformational for ATM.
1/6
Tin pushing to record highs again, yet #ATM flounders 25% below the recent £13m placing at 6.0p.
Phase 1 Expansion at the Uis Mine in Namibia completes mid next year. This will be transformational for ATM.
1/6
https://twitter.com/MylesMcNulty/status/1441325425720844288
At the current tin price ⬆️, Uis running at nameplate capacity of 1,200 tpa (post ongoing expansion works) would be generating circa £26m EBITDA on circa £36m revs.
The pilot tantalum plant to come online in next few months will provide incremental revs (although at this... 2/6
The pilot tantalum plant to come online in next few months will provide incremental revs (although at this... 2/6
...stage, unknown), which could grow considerably. Lithium oxide should also come online at Uis Phase 1 - perhaps later next year.
At the current tin price, the expanded Uis Phase 1 (without Ta or Li credits) will have an NPV of $70m to $80m, v. #ATM's current EV of $61m.
3/6
At the current tin price, the expanded Uis Phase 1 (without Ta or Li credits) will have an NPV of $70m to $80m, v. #ATM's current EV of $61m.
3/6
But the real investment proposition is in Uis Phase 2, which could see tin output expanded by c.8x, to 10,000 tpa (not to mention the Ta / Li credits, that @Afritin_Mining's mgmt has stated could ultimately make up half of the project's annual revenue).
#ATM believes that... 4/6
#ATM believes that... 4/6
...total annual revenue from Uis Phase 2 could exceed $500m (and that's in a significantly lower pricing environment).
The expansion may require $150m to $200m in capex... But Uis Phase 1 running at nameplate capacity, generating £20m+ EBITDA pa, could be leveraged to... 5/6
The expansion may require $150m to $200m in capex... But Uis Phase 1 running at nameplate capacity, generating £20m+ EBITDA pa, could be leveraged to... 5/6
...source a big chunk of that capex, esp. if Phase 2 is also built out in stages.
The key will be in how equity dilution is minimized, to achieve Phase 2 build out.
If managed well?
$500m annual rev biz, at 60%+ EBITDA margin...
versus #ATM's current mkt cap of £51m.
🤷♂️
6/6
The key will be in how equity dilution is minimized, to achieve Phase 2 build out.
If managed well?
$500m annual rev biz, at 60%+ EBITDA margin...
versus #ATM's current mkt cap of £51m.
🤷♂️
6/6
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