Jmg, thanks for your input. A few points I would like to make :
- I have assumed the project's capex is fully funded by Oceanwide's offtake agreement (share dilution). There are currently 145M shares on issue. I use 200M shares in my figures (55M shares x $3.80 = $209M).
- the SP estimate of $13 I gave is the rough value once we are actually receiving dividends of $1.30.
- Goldman Sachs predicts copper prices of around $11,250 in 2012 (a 25% premium to todays figure).
- Native copper fetches a 10% premium on the LME.
CDU Price at posting:
$3.19 Sentiment: Buy Disclosure: Held
