snapshot of cudeco today

JORC RESOURCE FOR EIS..30million tonnes @ 1.24% Copper equivalent /Cu/Au/Co
REVENUE TO 30 MILLION TONNES @ 1.24% COPPER 372,000 TONNES @ $A8,467 tonne
TOTAL REVENUE; $A2.54 Billion
COST TO MINE: $A7 tonne and COST TO TREATMENT: $10 Tonne :
TOTAL COST TO MINE AND TREATMENT: $A17 tonne
TOTAL COSTS $A30million tonnes @ $A17 tonne $A510m
ON SITE CASH MARGIN; $A2.54Billion less COSTS $A510m is $A2.03 Billion
Obvious costs to be added are Admin, Royalty to Gov 2.7% and Tax.
If the grade mining is higher than the geological grade which may be the case then the Revenue could well double with the costs remaining the same.
The costs I have used are $US3.46lb ($A3.84lb) LME Copper Price 3.9.2010 lbs per tonne US tonne =2205lbs.
Using the 12mt @ 2.05% Copper for the first 4 years would produce 61,500 tonnes per year for the first 4 years. This changes the Revenue to $A520m per year and a cost of $51m per year leaving a margin profit of $A469m per year less admin, royalty 2.7% tax.
Allow 5% admin $A23.5m, Royalty $A12.6m, TAX 30% leaves a NETT OF $A204m per year
There are 136m shares in CUDECO which equates to an Earnings per Shares of $1.76 per share
On a Price to Earnings of say 10 should allow CUDECO A PRICE PER SHARE OF $A17.64
These simple maths makes CUDECO good to me at $2.00 per share , IMOO.
The numbers I have used are industry numbers and I would love to know how Fosters came up with
A Share price of $A1.40. I did notice Fosters used a price of $220 (0.11clb) for Copper to help them with their plight. Interesting hey? Please feel free to prove my simple maths wrong or right & of course all of the above is my humble opinion only , but hope it may help some people whatever their views are with CDU, good luck to all .
IKEY MOSES
THE SPARTANS DONT ASK "HOW MANY?" THEY ASK "WHERE ARE THEY?" AGIS II OF SPARTA.