I like to use AISC earnings as a comparative number. Using $3 per pound as a Cu price, I simply deduct the AISC to get AISC earnings per pound of Cu. Using the prev aisc of 99c/lb, and 75ktpa I got a 20 y LOM annual AISC ebit of $332.2m. Using the midpoint of the latest at 92.5c/lb, and 87 ktpa I got a 20 y LOM annual AISC ebit of $398m. So a 20% improvement. These are rough rule of thumb figures only. Obviously the additional val depends on whether you use a pure DCF, which will not heavily weigh cashflows from 2026 onwards (unless you have a complicated termination val calc), or a more comparative or multiple based val technique.
Any comments welcome - please feel welcome to hit me hard if I have misunderstood the previous expectations, or missed the latest cost expectations. - cheers
OZL Price at posting:
$10.32 Sentiment: Buy Disclosure: Held
