Projected EPS $3.22(lower Price case) $4.33(Base Case) and $7.29(Higher Price Case):
For those who don't have any professional finance/ accounting background, please look at the following projected EPS based on the PEA:
NB.TO - Projected Economic Results (in million)
Preliminary Economic Accessment (PEA) Lower Price Case Base Case Higher Price Case
(A) After-tax NPV1 @ 6 to 9% Discount Rate $420.00 $562.00 $940.00
(B) After-tax Internal Rate of Return 10.39% 13.90% 23.25%
(C) Total outstanding # of shares as of April 13, 2015 145.72 145.72 145.72
(D) Total outstanding # of diluted shares as of April 13, 2015 161.88 161.88 161.88
(E) Incremetal Earnings Per Share (EPS) in USD$2 $2.882 $3.857 $6.451
(F) Incremental EPS in CAD$ as of April 13, 2015 $3.648 $4.882 $8.165
(G) Existing basic and diluted EPS (loss) in CAD$3 -0.050 -0.050 -0.050
(H) Net incremental EPS in CAD$ $3.60 $4.83 $8.12
(I) Net incremental Diluted EPS in CAD$* $3.22 $4.33 $7.29
Note:
1. Assume that the Net Present Value factored in the variances of depreciation/amortization, working capital and capital expenditure
2. EPS= Net loss/O/S shares = -0.05/145,720,000
3. Diluted EPS = Net loss/ (O/S shares + O/S Warrants + O/S options)
145,720 oustanding shares as of April 13, 2015
3,499 special warrants as of Dec 31, 2014
12,660 oustanding options as of Dec 31, 2014
4. Possible financial available options for one time set up cost $653 million:
a) Secured loans against the land and other PPE through the banks
b) Line of credit margined by inventory and/or collectible receivables
c) Issurance of shares
*Assume there is no further private placement for issuing new shares
But it is expected that there will be a minor effect on dilution when NB finances funding through equities
Based on this positive perspective, we strongly recommend that this is an excellent opportunity for value investors to pursue. We already have over half million shares and will consider to add more before the FS.
