You say "the problem with the stock is the fundamentals in the PFS (22/8/12) seem kind of poor
the opex is $2.71/lb before gold & silver credits
$1.16/lb with gold & silver credits
the upside case is double the JORC & earn pre-tax $155m free cash flow
if there are 700m shares on issue, that is 15.5 cents cash per share earned after 9 years of mining (on 30% tax rate)
currently $39M in accumulated loss so that is all of the tax if the Mexican allow it
$155m cash flow/700m shares = 22 cents per share over mine life
that is assuming 100% debt funding for the CAPEX"
The company say......
Promontorio – Positive PFS Results ( before last results were known) Current Prices (@ 20/11/2012) Cu @ US$3.50/lb Au @ US$1,720/oz Ag @ US$32.30/oz ITEM RESULT Mine Life 4.5 Years Capex US $34.5 Million Gross revenue US $174 Million Free cash US $63 Million cash costs US $0.96 / lb Copper
Upside Case
Promontorio – Upside Case Upside Case uses Current Prices with double the Mining Inventory. All other parameters remain unchanged. Exploration Target – initially double the mineral resource to: 1Mt @ 4 - 5% Cu 2g/t Au 100g/t Ag ITEM RESULT Mine Life 8.8 Years Capex US $34.5 Million Gross revenue US $414 Million Free cash US $174 Million C1 cash costs US $0.83 / lb Copper
maybe you can tell us where the company is wrong about its costs and why they are wrong about claiming they have 551m share on issue versus your claim they have 700m on issue.
Flux
AZS Price at posting:
4.7¢ Sentiment: ST Buy Disclosure: Held
