simple maths

All this talk of takeovers prompted me to revisit my numbers to decide how much I'd want.

Last year I determined after the Perkoa Glencore deal was done that BTR would get a net 30c per share per year for 10 years out of that deal starting pretty soon. With the Zinc price higher and the talk of adding other minerals to the zinc mining I'm going to assume that number is on the conservative side. Sort of makes the current 70c share price look like a bargain Do your own research of course etc etc.

Now for Kitumba. I'm just using the JORC numbers for Kitumba alone. This is the proven stuff, not the potential stuff ie: this is the least it is worth. You really need to multiply things out to get a real feel for how much mineral is involved. We have 521 million tonnes of ore with copper at .34%, gold at .06g/tonne and silver at 1.45g/tonne. That equates to 1,771,400 tonnes of copper, 34,260 kg of gold and 755,450 kg of silver.

Copper: $9908/T (lets call it $10,000 to simplify the maths) X 1,771,400 tonnes= $17,714,000,000 ($17.7 billion)
Gold: $44,841/kg X 34260 kg = $1,536,252,660 ($1.5 billion)
Silver: $40/0z X 26,631,000oz =$1,065,240,000 ($1.065 b)

So lets call that $20 billion dollars worth of mineral divided by 100 million shares equals $200 per share worth of mineral in the ground at Kitumba.

Now I don't know what it costs to mine stuff, but even if the overhead is 95%, that still leaves $10 per share out of Kitumba alone, ignoring the rest of the resource. Of course the rest of the resource could be worth ten times, maybe a hundred times the proven stuff. I mean it's a 500 square kilometre area we own around the $20 billion worth of minerals that are already proven.

So my point. We have 30c a share for 10 years guaranteed minimum return from the zinc. We have $200 per share mineral proven to be in the ground at Kitumba with the possibility that that number is in reality multiples higher.
I don't like to brag, but I get a mention in the annual report as a top 20 shareholder. I'm one of those people who has been around since the aim days and tightly holds their shares.I can tell you for a fact I'll be holding out for a lot more than a couple of bucks if there's a takeover. You'd be a fool not to (IMVHO).