Hi guys, Just quickly on the 'best way' to work out potential...

Hi guys,

Just quickly on the 'best way' to work out potential revenue, i see some are struggling with the figures, mostly when you have copper which is quote at "$ per pound" and then you have the company letting us know they're gonna push through 25mtpa in ore, increasing to 50mtpa.

Firstly its a good thing to know that 1 t = 2204 lbs

So 25mtpa x 0.37% Cu (i have no company data on recovery% and have used 0.37% as an average of 0.39%, 0.35% and 0.38% in the measured indicated and inferred resources) anyway that comes out to about 92,500,000 tonnes of copper

multiply that by 2204 = 203mlbs of copper p/a
current spot price of copper is at about $4.35/lb

The price of copper has increase alot in the last year, having been $3/lb a year ago and lower before that so we will use a 'conservative' price of about $3.70/lb to work out revenue, considering we currently have no data on OPEX costs as the Feasibility study is yet to be released, we dont know what kind of profit margin we are to expect.

So 203mlbspa x $3.70 = $751m p/a this is just a rough estimate of revenue, and we are not considering any other 'by-product metals' that we might be able to sell including gold and silver.

So revenue of $751m p/a (assume 40% is profit) = about $300m profit p/a.

When company starts producing at 50mtpa throughput, we could simply double the above figures and assume a revenue stream of about $1.5bpa and profit of about $600m p/a.

Note: Rough figures, prices of copper may flutuate, currently there are expectations to the upside, so anything over $4/$5 would make these figures alot more appealing, we also need to consider we dont have any OPEX data yet, and from how the share price is acting we might have to assume that CAPEX figures are 'expected' to be higher than originally planned (again this assumption based on recent companies releasing feasibility studies that have seen 'blowouts' in CAPEX costs, as well as the current share price pressure)

All in all i've done a little analysis on this company and think this is an awesome long term prospect, am yet to buy in (lack of cash), though have an order waiting at 20c.

So goodluck to all, but ridiculously undervalued on both a EV/t case and a current value vs. future revenue base.