$8 valuation, page-9

Hey stuwall,

I've no experience in valuing SP but I would think you'd have to deduct the AISC ( All In Sustaining Cost (AISC) the mining metric that estimates all direct and recurring costs required to mine a unit of ore) to obtain the net earnings. Then you have take into account interest & taxation on the to derive a true profit per annum. Then calculate the LoM (life of the mine) in years and then multiple the annual net profit (after interesr & tax) by the years of production. Then calculate the NPV (net present value) of the total net income over the LoM divided by the SOI. This will give you the true SP.
In saying the above, my gut feeling is that Julimar although a huge world class Tier 1 discovery, it is only the tip of the iceberg. There is more more to be found in CHN's tenements and Julimar may turnout to be another "Voisey Bay". Thereby making CHN another BHP. So if that is the case, CHN's sp could be $40, $50+.

CHN is definitely a long term hold, to be accumulated on any significant dips.