A$20 billion dollars in ground metal value?, page-23

The Rex Investor Presentation of Feb 2012 sparked my interest in Rex and in particular the chart "Hillside - Estimated annual profit margins improving A$ Copper price" which gave three Copper price scenarios and the annual profit margins for each scenario. I failed in my attempts to reproduce the presentation (which is available on the Rex Minerals web-site) but the results are summarized below.

The scenarios came with a common cost base of A$375Mpa. No doubt a lot of the costs have escalated but I understand that there have been great advances in mining efficiencies which would provide some counter- balancing of such costs.

COPPER PRICE A$ $6,000/t ($2.68 lb), $8,000/t ($3.57 lb), $10,000/t ($4.46 lb)

GROSS PROFIT A$ $255Mpa, $465Mpa, $675Mpa

With Friday's closing price of Copper at A$4.17 Hillside's Annual Gross Profit (at 2012 costs!) would be around A$630million.

As a REALITY CHECK it would be interesting to get another presentation from Rex management factoring in present day costs against current and projected higher Copper prices which now seem to be the trend. One would assume that Rex management has not been passive in recent times and have been doing their sums as the Copper price rises?

Maybe we are worth a fair bit more than last Friday's A$22million? I seem to recall that Copper deposit potential also extends beyond Hillside and if Copper continues its price rise further exploration down the track should add even more value to Rex.