Hi guys,Equinox is a sick puppy if the share price is any...

Hi guys,

Equinox is a sick puppy if the share price is any guideline to go by.

But looking at the fundamentals we get a very different picture.

Mcap $873
Share price $1.89
Shares on issue 440 million
Cash as of 31/12/06 US$66 million
Debt facility in place for US$583.8 million

Uranium resouces 22 million lb (US$75/lb)
Copper resource mining live 37 years

Copper production 170000 t/year (374 million lb/year)

Revenue assuming copper price of US$1.75/ lb (current US$2.43/lb)

Production Copper = US$654 million
Operating costs US$0.78/lb = US$291 million
Profit = US$363 million

EPS= 82.5 cts
PER 7 gives us US$5.77 =A$7.21 per share undiluted.

Not included in the above is the value for 22 million lb/U (at todays price US$75/lb = US$1650 000 000)

As you can see the share price is ridiculous cheap even if we use the US$1.75 price for 2008.

The Uranium value alone covers the present Mcap already twice!!!

Something has to give.

jojo