2.5m ounces at $39/oz $97.5m = Revenue $30m Total Cost ($12/oz) $67.5m - tax = $47.25m net profit $47.25m / 170m shares (higher number allowing for dilution) = 28cps
Multiplied by the 5 year mine plan and you have $1.40
Doesn't provide value for: - Potential to extend reserve and minelife - Current resource over and above reserve - Further exploration potential - Potential for lower total costs via lead credites - Further rise in Silver price above AUD$39
Personally I would put CCUs value at around $1.80-2 presently, but expect that will be much higher by the end of the bull market in Silver.
CCU Price at posting:
96.0¢ Sentiment: Buy Disclosure: Held