Hi KPGood thing you only borrowed the simplistic financial model...

Hi KP

Good thing you only borrowed the simplistic financial model from someone else. As it means I am not having a go at you. As it has completely forgotten one of the core principles of finance and valuation. The "Time value of money", where future cash flows need to be discounted back to a present value. Simply put $1000 today is worth more then $1000 in a years time.

Now if the model threw in inputs for the upfront capital costs, took inflation and corporate tax into account and made assumptions for metal prices and exchange rates and other inputs for each year into the future then discounted the cash flows it might be a bit closer to the mark.

That $230M will be way over the mark based on the assumptions provided by the other poster.

This post is just trying to say do not get too sucked in by what looked like a pretty good attempt at a valuation, but unfortunately it was missing some critical elements.