Atlas Lithium Corp (ATLX)

[Bemis223]

I like your numbers in DD ITMD:

Q: So what do you think is fair PPS for BMIX?

A: I will provide two different perspectives below:

1) Combining revenue streams from gold, diamonds, sand, mortar and royalty-based partnerships, BMIX can reasonably make $3M net profit as early as end of FY 2017. An average P/E ratio for mining companies is 25-30. It is often higher than that for younger mining companies with many virgin claims, but let's consider the worst case scenario of 20, just to be conservative. So with a net income of $3M, the OS count of 100M (given the worst-case scenario of maxed out A/S), and the P/E ratio of 20, that comes out to $0.60 per share.

$3M/100M = $0.03 x 20 = $0.60

Reflecting upon the revenues obtained by the previous operator of BMIX property, $3M in net BMIX profit for the year is very doable for 2017. And the P/E of 20 is very conservative considering how many claims with future potential BMIX possesses. Add to that the upcoming hype from the penny traders who are starved for the stocks that actually have net profits, and the PPS potential here extends way beyond the $0.60 even at a maxed out A/S of 100M. This, obviously, represents a HUGE return from these levels.

2) In September 2014, Goldman Small Cap Research Report pinned a target market cap for BMIX at $25,380,000 (84.6M x $0.30).

http://www.brazil-minerals.com/wp-content/uploads/2013/02/Goldman-Small-Cap-Research-Report-BMIX.pdf

Given that the company's current OS is 26,130,923, the above market cap corresponds to a PPS of $0.97

Also, keep in mind that this target was established BEFORE all the new developments. For instance, BMIX has acquired many more property rights since then, established additional cash flow from sand and mortar sales, as well as developed several royalty-generating partnerships. So, arguably, a reasonable market cap target should be significantly higher today.

Even half this would make me happy at the end of the year....seems achievable.