OZL and Glencore's Cobar Mine

http://www.bloomberg.com/news/artic...d-among-final-bidders-for-glencore-cobar-mine

300 m US$ seems a good price to me for a 50.000 t p/a copper mine.

Reserves of 3 Mt Cu a 5,9% would secure approx 3 years production
Further potential for 16 years if Ressources of 14,5 Mt a 5,6% are mineable.

The operating Cash Flow of Cobar could be approx 75 USm$ p.a. at current copper prices.
Maybe -10  m$/p.a.  for exploration and replacement capex are necessary per year.

With a net Cash Flow of 65 USm$ per year an a 19 year mining operation i calculate a NPV of 575 USm$ for Cobar (calculating with 10% interest rate).

Could be a very good deal in my opionion.