Fonon Corp. (fka FNON)

[danielleequities]

So here is the rub on MBWI

1. Valentine, BaseMinerals, and all the other meaningless things do not matter - the only thing that matters is if MBMI will generate revenues, cash flow and then what will the EPS be.

2. Mabwe has 140 million shares.
If Dodge Mine generates $25 million in revenues in 2014, $7 million in cash flow and $2 million in net profit, and then after Mabwe Private and Kinsey get their 75% share of the $2 million profit, MBWI (the public company) will get $500,000 in net profit. The 7 million in cash flow out of the $25M in revenue takes into account proceeds going back to the Zimbabwe Government for mineral rights, tax on revenues and extracting Barite out of the ground. Their are a number of other small incidental costs that Zimbabwe government charges, but $25 million in revenue with $7 million in cash flow is the proper percentage.

$500,000 in net profit divided by 140 million shares equals .003 cents a share. If you give MBWI a 50 times P/E ratio the share price comes out to 15 cents per share.

Keep in mind I am giving a 50 multiple and the stock price is still only 15 cents. Since the company has no assets on the book and the company does not providing forward guidance, the fair market value of MBWI seems to be 15 cents. Most people would think a 50 multiple is too high, but I gave them the benefit of the doubt for this calculation.

Can anyone dispute or give me a different formula to use for me.