cashed up and ready to go !, page-8

This should run hard tomorrow but it does not inspire me.

MGO would be lucky to produce at AUS$1.15 lb.

My guess work.

110,000 tonnes per annum copper equivalent expanding to 220,000 tonnes per annum



498 million shares on issue, with cash reserves of approximately A$24 million



Capital estimate of approximately US$1Bn or AUS$1.2B.



2013 commissioning



Annual revenue at US$2.85lb and 85 cent exchange rate = US$812M



Costs AUS$1.15lb. EBITA = AUS$530M NPAT = $300



Raise $600M at 50 cents per share. Shares on issue at production = 2,000 million.



EPS = 15 cents 2013 share price target = $1.50



Gain per annum on 15 cents buy today = 200%+ on based production of 110,000 tonnes per annum



Then double rate of production to 220,000 tpa for double the EPS.




However, I think this is risky.

I doubt they can produce at AUS$1.15 per pound.

If copper is US$2.50 lb and costs $1.50lb, margin is $1.45 lb

EBITDA is $350M. NPAT = $200M EPS on 2,400 million shares = 10 cents or less. Maybe 8 cents.

DYOR. BYOB.