Lets look at SMO:Total Resource:Dalmacia - 2,500,[email protected]%cu =...

Lets look at SMO:

Total Resource:

Dalmacia - 2,500,[email protected]%cu = 32,500t

Cinabrio (Block 1) - 1,345,[email protected]%cu = 25,017t, 24gtAg.
Cinabrio mine life currently around 44 months, although a significant upgrade to it's resources is expected to be announced over the next week, possible total resource of all blocks is expected to be between 5 - 10 million tonnes at 1.5%cu = 75,000t of Cu at the lower end.

Expected Revenue:

Q4 04-05FY - $3,000,000
Q1 05-06FY - $4,000,000 (Increase due to output increase from 1,000tpd to 1,500tpd)

Target production is 3,000tpd, roughly $3,000,000 a month with a mine life of roughly 33 months for Dalmacia and 71 months for Cinabrio with a total resource of 5 million tonnes.

This puts a current valuation of the above ground copper resource of SMC at around USD$143,792,500 (consevatively valued at $2500 a tonne of copper concentrate, figure does not include resource upgrade), big number but cost will knock around USD$40,000,000 off.

In ground resource would be valued at around USD$50,000,000.

This given I would value the company at around A$50,000,000, lowered due to uncertainty as the ore is not out of the ground yet, or 14.86c per share, not including the Chilpe gold project.

But I'm only guessing so you should do your own research and talk to a professional.

regards.


If this makes no sense please let my know why.