There's 147m shares on issue currently, with requirement to...

There's 147m shares on issue currently, with requirement to raise $30m for plant CAPEX.

For the purpose of the example I will dilute the registry by the amount required to fund the CAPEX, it's likely they will finance part of the CAPEX with a loan (but let's call this the worst case scenario).

$30m / .67 = 44.8m shares extra added to the original 147m (+ 6.7m options) gives us a diluted registry of 198.5m shares.

Let's just use the AUD spot price for now of $30.50.

So 2.6moz x $30.50 = $79.3m revenue per year
$79.3m - total costs ($24.7m @ 9.50 per ounce) = $54.6m Gross Profit
$54.6m - 30% tax and royalties leaves $38.2m Net Profit per annum
$38.2m/198.5m shares = 19.25c EPS x PE of 5 and you have 96.25c per share

* That provides no value for additional resource (other than what they mine over the 5 years).
* It provides no future value should the price of Silver continue to increase.
* No extra value built in for successful exploration increasing their resource base.
* Tax deductions that CCU may be eligible for (after plant/exploration expenditure) are not taken into account.
* The total cash cost may be lower than the $9.50 I�ve used in the example.
* Also the increasing price of lead may very well reduce costs even further!

Ultimately I can see CCU trading at over $2 per share (conservatively) and possibly much higher depending on how high the price of Silver goes.