Initial Potential of New Company
The new company will operate on 50-50 basis. The initial production volume will be 100,000 DMT per month e.g. 1.2 million DMT annually. With the contract price of $76/DMT, this gives $91M annual revenue. Look at the iron ore mines like RIO, BHP - their net profits are between 25% to 30%. Taking a 20% net profit, annual earming will be 20% of $91M = $18M. so CWRN's share = 50% = $9M, distribute it over 4B shares, EPS = $0.0023. With P/E of 20, PPS = $0.045.
No consider a R/S of 1 for 100. 4B becomes 40M shares. So EPS = $0.23, with P/E of 20, PPS = $4.50.
Now let me consider my case.
Investment = $3000 = 15 million shrea
with 1-for-100 R/S total shares = 150,000
using above calculation the net value will be 150,000 * $4.5 = $675,000. Looks like a day deam but I could put $3000 and wait for 5 years.