That estimation is at AUD/USD=0.65. At AUD/USD=0.7, the estimate (and thus valuation) falls about 25%.
Undoubtedly this explains the recent price retracement, as it downgrades the projected share valuation to 15.5c.
Still, this is now 50% higher than the current price, and the AUD can't go much higher than 72. Other sensitivities used, however, such as the Iron Ore price, are conservative and have since risen.
Have a look at the report: http://www.aztecresources.com.au/read/2385900798
I'll be picking up more, especially if we head towards a 9.5/10c trading range. Hopefully once this mining boom that makes bargains so hard to find quietens down though.
AZR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
