re: jh dnl v cdu Motors,
Have you run a average mining profit model based on the old data and todays copper price at a 25% discount.
Do it and it still comes up with = 'No Brainer'
I have run a model for a conservative (always wishfull though) resource of 70,000,000 tonnes at an average grade of 1.7% (this is the conservative part - this is just copper and not inclusive of silver and other goodies). I have also popped in a low 80% recovery factor and varied the strip ratios between 18 -25. I am getting figures between $500 million and $1.5 billion dollars in profit.
Pump this up to say an average resource including equivalents at 2.0% and a 85% recovery factor and the result moves into the $2.2 billion to $4 billion range.
Unless someone is not feeding us the truth, or modeling just simply does not work with this project then once again this = 'no brainer'.
Not too sure what is the key to getting people excited about this one, but as I have stated before, this board does not ramp but rather reports on facts. Take a couple of the more recent announcements from company's with Cu deposits in Queensland. If DNL had adopted the same approach the announcement would have read something like this -
".....is proud to announce confirmation of the existance of previous drilling data which provides enough evidence for the company to theorise a hypothetical resource of 90,000,000 tonnes at equivelant grade of 2.5% Cu. It is anticipated that this is the varnish on the benchtop and the deposit extends to the centre of the earth.."
Sorry for ending on such a sarcatic note
PS,
I am happy to take my share of the above modeled profit in a divedend over ten years - at my dream case scenario (of $4billion) above based on 70 million shares that equates to $57 a share. I guess under these circumstances we will let them raise a bit more cash to finish the job.
Good Luck
DNL
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