great work on the spreadsheet cardpro yet again!!- its good we can all add our bits of skills to make a better whole.
My comments :
I think your costs may be a bit low. Mine production is only one part of the compcosts- admin /marketing/ non mine personnel/legals etc etc... I'd add AUD3-5 million a year for that.
but it shows theres actually quite a lot of wiggle room based on potential production hiccups or price fluctuations.
I'd rather be more conservative (I know that may sound weird to some of you ) and I would:
1. increase mine costs to 60$ a ton - to be more sure.
2. maybe drop the PE to 8x?? (whats an/the average PE in Oz for a mne with a 20 year life-or is that like how long is piece of string ?)
3. theres also (as someone else mantioned the payability issue on the Co and Cu) max 75% of price - but again you got more complicted and added in Cobalt sulphate/Copper cathode matals Gross sales income be significatly higher -costs only a bit higher.
but we can all fiddle around with these figures ourselves as we see fit - this basic valuation is a very good basic instrucment for people to base their own calculations off.
But Overall very cool job - thanks again for the good work - it certainly helps me.
PS: shouldn't the size/value of the resource itself also be included in valuations? Apart from just market valuations - I came across this same issue last year doing a hotel deal- When valuing a hotel do you value only on its profitability or also on its property/building potential too and if so in what ratio ? - there is apparently a fair OZ accounting method for doing that? Are there any Oz accountants who can enlighten us on this official method ?
CLA Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
