copper us $3.60

With all this talk about top-ups and elephants in Indonesia, just thought I'd bring things back to earth with a quick Graham insight.
Copper is currently trading ~ $3.60 US, USD/AUD ~ $0.92. Based on HGO's estimates from 2 June 2008 this puts the NPV of Kanmantoo at approx $148 mil (based on a 1.2 mil increasing NPV per 1 cent increase in CU/lb, and factoring in USD/AUD at 0.92 instead of 0.892 ie 10% decrease in NPV).
This doesn't take into account the reduced Capex of 32 mill or the fact that gold is now at US > $1100 and silver AUD >$18.50. Taking these into account, Kanmantoo alone should have an NPV of around 175 mill. I also haven't mentioned that the mine will now require less debt due to their strong cash position.
What I'm getting at, is the based on the above values, HGO at current levels is valued on Kanmantoo alone. All cash, tenements and top-ups are simply a bonus. By focusing on these other aspects, it clouds the true value of a cash producing tangible asset. The earlier that Kanmantoo comes online the better, and a bit of forward hedging may not be such a bad idea as well.
But as always, analyse the numbers and DYOR