Note the calculation using DCF to generate a value of $1.05/share.
Using 1 x DCF value is very conservative as it does not give any value for additional ounces in the ground through conversion or exploration success over those ounces allocated against production in the DCF.
Also there is a call option value that should be allowed as one is actually taking a long position on silver when one buys shares in a long life silver mine.
In this type of scenario I would allocate a 1.5 X DCF. If potential plan to up production is validated this would also increase valuation.
CCU Price at posting:
71.8¢ Sentiment: Hold Disclosure: Held
