DYOR - NOT AN ADVICE
ALL FIGURES TAKEN FROM ANNUAL REPORT
My take on BLK:
Cashflows from expansion $457 Million over a period of 9 years
Current shareholding - approx 350 Million Per share entitlement is $1.30 in 9 years i.e. $0.14c per annum in earnings. Its 66.67% per annum.
To put that into perspective you invest $10,000.00 and you get $7,000.00 each year for 9 years.
Buffet picks companies that are worth less than their book value. As they eventually reach their fair value.
BLK Price to Book Ratio is $0.84. It means you can can buy $1.00 worth of BLK at a discount of 16%.
I cant see any better deal to be honest.
Assumptions
207K oz pa for first 6 years
LOM AISC $1058/oz
POG A$1600/pz
