valuation based on recent news, page-9

Guys,

The recent MNC announcements were all positive and the market recognised that; but they do not justify the valuations I have been reading on this thread or valuations that equate to $1 per share.

The valuation for Constancia (Norsemont) is based on Proven and Probable Reserves, and that generally justifies a higher price per pound of Cu on the ground than that of inferred resources.

The Constancia project came along with a completed feasibility study (indicating NPV@8% of US$931.8 (using US$2.75/lb Cu; $18/lb Mo; $14/oz Ag; $950/oz Au). It also came along with ~4,000ha of acquired land (worth between US$20M-US$40M) and an approved EIS.

The deposit is also closer to surface with significant supergene mineralisation.
The depth of the open pit is about 350m, so that means lower operating costs and lower strip ratio. That makes its Cu pounds more valuable.

To summarise it, the Constancia project is a derisked project ready for a decision to build. Los Calatos is still a far distance away from that.

Now back to the MNC announcements what I am surprised has been missed is the fact that the capital raised will be used mostly on the development of the Mollacas project and exploration at Vallecillo, Loica and Camaron. That is a smart move considering the current political uncertainty in Peru.

I am not planning to buy back, there is still no clarity about the political situation in Peru. Recent polls put Humala ahead for the runoff, but the gap with Fujimori appears to be narrowing.

Alejandro
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DYOR, this is not investment advice
STO, PEM, BDR, TRY, HCH