It is unclear to me exactly how earnings are/will be affected by the dilution. Certainly, there looks to be some 31,000,000 shares outstanding at some point. There may be restrictions on some of them, I'm not clear.
What I feel confident about is the following:
The profit per cu. metre is approximatley $ 470 USF. They were in position to sell 400 cu. metres per month. But with the cash infusion from the private placement they will be able to be quarry equipment which will increase their output to 1,000 cu. metres per month.
Therefore, we are talking $ 470,000 USF per month x 12 = $ 5,640,000 annually. This is about what earnings should be. Converted to Cdn dollars by dividing by .74, this becomes $ 7.6 million. This is 25 cents per share earnings -- fully diluted -- which should put the stock price at $ 2.50 to $ 3.00 just on what we know today.
This should be the price to which the stock gravitates as things unfold, IMHO. But intermingled with these unfolding developments, to my understanding, will be some other projects in Surinam, and then later, by my prognostication, some entire other project which Bomax's backers have been looking at onece they get some cash flow.
I guess the message I'm trying to leave is that this shouldn't be viewed as a "one-product" company, and that it was always in the gameplan to roll-over profits into other projects to GROW the company.
Profitable investing to all -- SP |
