for periscopes and flats
To go back to your two posts at the start of this thread.
I did some qucik dcf calculations to see the theoretical effect of a one cent rise in the price of copper on AVL valuation.
Over 5 year mine life: 1 cent increase per pound Cu increase the value of AVL by a little more than 1.4 cents per share.
Over 8 year mine life: 1 cent increase per pound Cu increase the value of AVL by a little more than 1.8 cents per share.
Conclusion: AVL is far more sensitive to increasing Cu than OXR.
Assumptions: * discount rate 20% (nice rate if you can get it) * cash flows not recieved until the end of each year (very conservative I know) * exchange rate AUD/USD constant * price of Cu constant * shares on issue remain constant * constant production @ 20,000t Cu
