ok, so i've finally looked at the maths for this, being an accountant its about time i did!
shares - 717m... sp 0.073 total market value APG = $52m
so 1 mine will give $10 profit pa for a $7m investment @ a cost of capital at 20% will give a net persent value of $28m...(over 10 years) therefore if one steel brought us at the current sp they would only need to develop 2 mines to break even...have't they got 138 mines?
please tell me i've got a 0 in the wrong place somewhere!!! I'm sure there are financial analists that have looked at this could you tell me where i'm going wrong or are we all on a winner here!!!
sorry a little drunk when doing this!
Net present value is the ultimate way of valueing projects and the only way of valuing this type of project!
moving on if one steel developed half the mines then thats over $3b that makes the SP value to over $4 each.
please dont tell me you're selling your shares at 8 cents you're having a laugh!
sorry i am drunk so help me here!!
maths
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