Thanks Plough, my maths need checkingSo taking current spot...

Thanks Plough, my maths need checking

So taking current spot prices and exchange rates, would you agree that:

- 750,000 tonnes @ 4.7% to 850,000 tonnes @ 5.80% is 35250 tonnes to 4930 of copper
- spot price in $US per tonne is 8301, exchange rate is 0.88
- Recoveries are typically between 85 and 95%
- Therefore in ground value is $280mil to $440mil
- Issue is what margins that they can receive ahead of costs, what capital is required for infrastructure and what is the time value lost in extracting the copper (mine life?). So turning these into wild guesses (help me out here) margins ahead of costs 60%, upfront capital $50mil, average duration of extraction 5 years (discount factor of 0.4 if you use 20%)
- Then using a back of the envelope calculation in ground value x time value discount x profit margin - up front capital = value
- get $18 mil to $56 mil value (understanding how rough these estimates are in helps put things in perspective)


Also what are your thoughts on the copper price going forward given:
- Demand - there are no doubt going to be reduction in copper used for US housing, however the "Chindia" effect may replace this?
- Supply - there is a lot of drilling and expansion taking place for many miners?

All this is aimed at me trying to determine if the current Kapulo project itself would justify the market cap in which case any expansion of copper, gold projects in aus and iron projects in aus are upside bonus

Anyone else care to comment?