DML 0.00% 1.9¢ discovery metals limited

buy recommendation?, page-23

  1. 1,057 Posts.
    I get a little excited when i think about the future and DML and this is why...

    Production Targets:
    - Annual production 35000MT
    - Annual production 77,161,000LBs (2204.6 lbs per MT right?)

    Copper Price for purposes of this exercise
    - Price 2.50/lb

    Production costs
    - 1.28/lb

    Tax
    - 30% (though i think its slightly lower)

    Profit before tax (77,161,000*(2.50-1.28)
    - 94,136,420

    Profit after tax
    - 65,895,494

    Earnings per share (i think we have 230,300,000 shares on)
    - 0.41

    Share price at 8 multiple of earnings is
    - 3.27

    Variables in the above are of course, the copper price, ability to meet production targets and costs.
    If we do we are in for a real ride. Lets hope. I have 175K shares so have some skin in the game here.

    What i am struggling with is, do i take some profits now or not? It seems sensible but the way the company is being managed they just might release another resource increase the day after i sell. Or the growing list of influential supporters will continue to pump the SP higher... Its a nice problem to have!
 
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