xtrata roseby drilling results, page-44

A very quick method of valuing is the percentage of recovery. It simply says that of contained copper in the ground you can get a feel for value by multiplying it by the average net profit recovery rates for other miners. There is argument around what this figure should be but is generally accepted to be somewhere from 1.8% to 4%.

Using the lowest end of 1.8% you get the following:

Contained Copper (tonnes) 2,750,000.00
Gross value 23,038,070,000.00
Percentage to Net Profit 1.8%
Net Profit 414,685,260.00
No. of Shares 518,700,000
Value per share $0.80

If you increase the percentage to 2.5 you get a value of $1.11 and at 4% it is $1.78.


Just looking at Finland and using the Jorc of 1.26m tonnes you get a valuation of $0.61 (using 3%). This is what I figure Helmsec Global securities did for their valuation as it is exactly 61 cents. Such a method values Roseby at 72 cents per share. Thus, at 3% for all operations you get $1.33 per share.