HCH 0.62% 80.0¢ hot chili limited

Yeah agreed, the future copper price is always the big what if....

  1. 443 Posts.
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    Yeah agreed, the future copper price is always the big what if. The net present value calculations done by Hannam and partners resulted in a NPV of US 1.7 billion, which I don’t think will be too far of the mark come PFS time. Their report was a lot more detailed than my quick calculations but I do mine as a sense check to make sure it is in the ball park and I know what I am paying for the stock relative to what I think it should be worth. A lot of the future based calculations are subject to wide fluctuations due to inputs constantly changing (copper price, capex and opex costs and discount rate) and the time period the analysis it is conducted over so I don’t put too much weighting towards them, I use them as merely guides. Whenever I do my own analysis, I always err on the side of conservatism in the event I am also wrong. The NPV will be higher for someone who doesn’t necessarily need to spend the upfront capex or not spend as much capex, that is why Glencore are interested here. Don’t forget to hit the thumbs up button. Cheers, CP.


 
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