There's a big difference between 1000ppm and 841ppm (stated in prospectus). A difference of 19%. At these concentrations, every digit counts. Also, you didn't take into consideration the OPEX and CAPEX, which is probably greater than 60% of total costs, not to mention the depreciation of cash flows over time due to TVM.
If management can get into production mode in a few years, based on the assumptions below, COB should have a value of around $368M.
Column 1
Column 2
0
Yrs till production
5
1
Growth rate of Co price
20%
2
Projected price of Co
$122,251
3
Mine life (yrs)
20
4
Yearly Co output (t)
1,501
5
Revenue/yr
183,521,610
6
% All-in sustaining costs (AISC)
70%
7
Free CF per year
55,056,483
8
Discount rate
8%
9
NPV
$367,891,062
All assumptions contingent on drill results and metallurgical assays. But it's way off from $4.5B.
COB Price at posting:
18.0¢ Sentiment: Hold Disclosure: Held
