HT,
NPV of $353m or 38c per share based on 10% discount rate and a Cu price of $3 after the present hedging unwinds.(Cu is presently around $3.43)
Even if you want to be more conservative and use a 12% discount rate, the NPV is $238m or 30c per share.
At around 20c SP, the market is applying a discount rate of 17%!
The optimist in me suggests that once we get through the commissioning phase where all bottlenecks/problems are eliminated and we implement the bigger plant capacity options, then a discount rate of 10% (in this lower interest rate environment) is not unrealistic...giving a NPV of $350m or 38 cents a share.
When I gave my prediction earlier of what HGO could do price wise, I am giving a generous allowance to valuing Birds Head based purely on the interest factor of the majors. At the very least, I figure there's a $25m "pack up and P.O." cheque for a combined Sumba and West Papua.
Caveat: Good manners requires that I disclose neither my age nor income, but I am comfortable with both and the missus calls me "Mr Terrific", not "Mr Has-Been"!!!
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Last
7.1¢ |
Change
-0.001(1.39%) |
Mkt cap ! $148.7M |
Open | High | Low | Value | Volume |
7.3¢ | 7.3¢ | 7.1¢ | $159.0K | 2.221M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 156904 | 7.1¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
7.3¢ | 789490 | 5 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 156904 | 0.071 |
13 | 748343 | 0.070 |
4 | 588840 | 0.069 |
2 | 85000 | 0.068 |
4 | 390000 | 0.067 |
Price($) | Vol. | No. |
---|---|---|
0.073 | 789490 | 5 |
0.074 | 404179 | 2 |
0.075 | 767587 | 5 |
0.076 | 1408 | 1 |
0.077 | 41873 | 2 |
Last trade - 16.10pm 17/07/2024 (20 minute delay) ? |
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