OZL 0.00% $26.44 oz minerals limited

prom hill is worth about $1.7bn

  1. 13,938 Posts.
    lightbulb Created with Sketch. 51
    and that would be on just on copper at $1.50 and an estimated cost of production of US$0.85c a lb
    NO gold
    The return on that money would be
    $430,413,223
    OR 25%

    Prominent Hill
    Reserves 1.3Moz gold, 7.0Moz silver, 1.9Mt copper (Resources: 3.7Moz gold, 15.8Moz silver, 1.9Mt copper

    assumptions
    1. 10% lose of product
    2. long term cost of production (estimate is US$0.85)
    3. long term price for copper US$1.50
    4. profit discounted another 10% for risk of not producing forecast earnings.
    5. Gold and silver including in cost projection

    copper reserves - 1.9m tonnes
    1 tonne = 2,204lbs
    4,187.6 lbs
    discounted 10% for lose in production
    3,806,909,091 lbs
    long term price for copper = US$1.50
    costs based on estimate '09 of .85
    long term costs $1
    profit $0.50
    Total $1,903,454,546
    discounted 10% for future risk
    $1,730,413

    so if you include the cost of the plant of $1.3bn

    you get this calculation

    $1,730,413
    -$1,300,000,000
    $430,413,223
    US$0.137

    1.17 x 1.19

    AUD$0.16 per ozl share


    based on info on P20 of the annual report
    http://www.ozminerals.com/Media/docs/oxiana_review_07_web-2d9f24d8-5164-426c-aa1e-2594fed5a587-0.pdf

 
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