buy recommendation?, page-27

Thanks Grid.
Total shares are now 310,987,060 which includes about 10M options.
New numbers are:

Production Targets:
- Annual production 35000MT
- Annual production 77,161,000LBs (2204.6 lbs per MT right?)

Copper Price for purposes of this exercise
- Price 2.50/lb

Production costs
- 1.28/lb

Tax
- 30% (though i think its slightly lower)

Profit before tax (77,161,000*(2.50-1.28)
- 94,136,420

Profit after tax
- 65,895,494

Earnings per share (total 310,987,060 shares including options)
- 0.30

Share price at 8 multiple of earnings is
- 2.42

As people have said, if you increase the copper price to 3.00 the share price becomes 3.41. At 3.50 its 4.41. At 4.00 its 5.40.

Personally im looking only at the 2.50 figure and hoping they can find another Boseto and increase annual production to above 70,000mt. There we might find a relatively stable share price of circa 5.00 and a company with lots of cash to do a) a lot more looking and 2) maybe pay a small dividend which would attract the fund managers and push the share price even higher. Pure speculation and dreaming there...

I think any thoughts i had of selling and buying back later have passed. Ill hold.