Hello,
I'm new to DML, and was looking over the numbers. I note BFS values the Boseto project at $250M / 51cps at a 10% discount rate (I think this is light, but better than most at circa 8%, so lets go with it. Also no sensitivity analysis on opex or the price of copper that I could find....?)
Contrasting this, there appears to be an expectation that management can significantly improve the life of the mine costs and production. This materially changes the value of the project to $375M or 76cps. Can anyone speak to the validity of this? Is the difference in reserves due to post BFS exploration, with capex costs novated over a longer project life? This is important as it's been noted in the news that Cathay Fortune walked after the DML were shown to have lower grades and reserves....
Otherwise, conservatively, with the share price at around 50c, it appears you get Boseto at fair value per the BFS with the blue sky thrown in for free. Interested in thoughts......
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