for periscopes and flats To go back to your two posts at the start of this thread.
I did some qucik dcf calculations to see the theoretical effect of a one cent rise in the price of copper on AVL valuation.
Over 5 year mine life:
1 cent increase per pound Cu increase the value of AVL by a little more than 1.4 cents per share.
Over 8 year mine life:
1 cent increase per pound Cu increase the value of AVL by a little more than 1.8 cents per share.
Conclusion:
AVL is far more sensitive to increasing Cu than OXR.
Assumptions:
* discount rate 20% (nice rate if you can get it)
* cash flows not recieved until the end of each year (very conservative I know)
* exchange rate AUD/USD constant
* price of Cu constant
* shares on issue remain constant
* constant production @ 20,000t Cu
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- copper now $1.23c/lb($2,700+)/t
copper now $1.23c/lb($2,700+)/t, page-40
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