Was thinking this morning what would CFR be worth if there was a large number of diamonds "in them there hills"? The numbers can be mind boggling, given:
area of 400m x 200m (probably much more than this)
average depth of 1.25m (reported 2.5m)
about 1t/m^3 weight
5 cts/ton (gem quality, reported 8 cts/t)
$50/t to process (probably a lot less)
$200/ct (but could be much higher depending on quality)
So:
400m * 200m * 1.25m * 1t/m^3 * 5cts/t * $200/ct = $95m
Now assuming a small operation of just 20,000t/pa (100,000 carats or ~$20m/pa, less $1m costs), a project life of 5 years and a discount rate of say, 8%, the NPV would be about $75m. At the present time there are about 1.7B shares, with the last sp 0.6c or an MC of around $10m.
So on a conservative estimate AND the resource proven, the sp could be anywhere up to 4.5c. Some would think this is optimistic I guess - but what happens if the project area doubles, the announcement figures are used and the output doubled to 40,00t/pa? The value of the find rises to around $620m and the new NPV rises to about $415m or a sp around 24c!
Given just the low sp estimate, it looks like a fair punt to me - and this is not counting any gold found either.
- Forums
- ASX - By Stock
- possible Disallowed?
Was thinking this morning what would CFR be worth if there was a...
-
-
- There are more pages in this discussion • 11 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)