Thus the model is quite close then ...depending how cash flow is interpreted.
After 4 years of "production" (say from 2014 on) the cumulative cash flow column for 2017 says $132M. But note that $74M of Capex has been deducted.
US$132M after capex, avg over 4yrs = US$35.5M or US$207M before capex, avg over 4 yrs = $US52M
The above takes into account LOE, Royalties and PIT. Does not take into account Corp O/Head, Finance charges or Australia company tax.
Regardless, a weaker dollar yields higher "AUD$ eps" and TAP would have made the investment decision while AUD was much stronger than now. As long as TAP is not raising equity in AUD to pay for Capex in USD then its a good thing as you are highlighting.
Doesn't appear to be an interesting subject though. Must be too "quantitative" I guess.
TAP Price at posting:
52.0¢ Sentiment: Buy Disclosure: Held
