re: shakers
I keep trying to figure out how the BFS is going to come back negative, unless there is some kind of unseen massive technical failure since the commentary in the fourth quarter activities report a month ago.
My NPV analysis, using AU$270M capex and US$0.80/pound (net gold credits etc.) opex and 12 year mine life (producing 580K tonne copper), keeps getting me back to an NPV breakeven copper price (using discount rate of 10% post-tax nom) of US$1.09/pound (real) and a copper price of US$1.20/pound (real) to justify the current share price, excluding any exploration upside. I'm assuming fully diluted post capital raising and repayment of all debt etc. etc.
US$2.20/pound (flat - real dollars) gets me $1.48/share on an NPV basis - fully diluted (around 550M shares outstanding). US$3.00/pound gets me $2.56/share, but of course this is an upside case.
Please do not base any investment decision on these numbers.
UNCLE
URL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
