""Luikonlahti Mill The refurbishment of the Luikonlahti mill is complete and the upgraded mill is designed to have an initial throughput capacity of 550,000tpa of ore which will produce on average 8,000t of copper metal and 8,400 ounces of gold in copper-gold concentrate per annum and 1,600t of zinc in zinc concentrate per annum (10,000t copper equivalent). The refurbishment has been completed on time and on budget.""
DFS states cost to produce 1lb of copper = $1.33
Copper price today = $3.86
$3.86 - $1.33 = $2.53
10,000t copper = 22,000,000lbs copper
22,000,000lbs x $2.53 = $55,000,000
$55,000,000 / 530,000,000 shares = earnings of 10 cents per share
10 cents per share x price earning ratio of 8 = a share price of 80 cents
Altona is trading at 28.5 cents a share, Roseby has NO value in this equation. The market is very conservative on this stock atm, with absolutely no upside factored in the stock price, be prepared for the upside.Only my opinion.
AOH Price at posting:
28.5¢ Sentiment: None Disclosure: Held