Mongolian Mining Corp. (MOGLF)

[Ponch73]

Rehashing MMC stats quickly:

Market cap: 349M USD

Enterprise value: 969M USD

Revenues (TTM): 120M USD (Dec-31-2016)

EV/Sales (TTM): 8.1x

Free Cash Flow (TTM): 29M USD (Dec-31-2016)

EV/FCF (TTM): 33x

Book Value: 557M USD (Dec-31-2016)

Tangible Book Value: 52M USD (Dec-31-2016)

Price/Book: 0.6x

Price/Tangible Book: 6.7x

If MMC can achieve sales volume of 4.4MT in 2017 at a $120 ASP, we might be able to expect something along the lines of $230M in unlevered free cash flow (assumes $60 cash gross margin per ton, $30M in SG&A, D&A = cap ex, minimal taxes). If all of that cash flow was devoted to paying down debt, the company's metrics start looking very, very interesting:

Market cap: 349M USD

Enterprise value: 739M USD

Revenues (TTM): 528M USD (2017E)

EV/Sales (TTM): 1.4x

Free Cash Flow (TTM): 230M USD (2017E)

EV/FCF (TTM): 3x

Book Value: 787M USD (2017E)

Tangible Book Value: 282M USD (2017E)

Price/Book: 0.4x

Price/Tangible Book: 1.2x

This, in a nutshell, is why we want to own the stock