valuation based on recent news, page-2

Not quite bdell.
HudBay in Jan 2011 paid about 7.6 Usc/lb copper equivalent (ie allowing for Mo byproduct) for Norsemont, bringing the Constancia project, up in the hills near Cusco, containing 5.25b lb Cu equiv., yes smaller than Los Calatos.
And April 2011 Capstone announced deal to buy TSX listed Far West Mining, paying about 11.2 c/lb CuEq (but not allowing for a likely Fe byproduct), with 6.72b lb CuEq. For Santo Domingo project in Chile.
Both undeveloped resources and both carrying feasibility studies, or close to.
But both also more or less drilled out.
Key points about Calatos, one, drilling of an obviously large system, a big footprint, has hardly started, the current resources (mostly Inferred) based on only 21,000m drilling. What resources after 70,000m? after 150,00m??
Well known Cu porphyries occur in belts. And LC sits smack in major belt, 2 large mines (and 3rd coming at Quellaveco) one way and one large mine the other way. All with multi billion tonnes resources.
And, two, LC is in outstanding location to build a mine. This is a crucial advantage these days. Getting harder to build big new Cu mines, because of environment / people issues etc. But LC is in unpopulated desert, at moderate elevation, near the coast (hence use seawater in process plant?), near existing infrastructure.
So MNC?s numbers?
We are talking about roughly 5.8 US c/lb Cu equivalent today, for 10.9b lb Cu equiv in resources, of which LC is about 10.4b lb. That?s enterprise value divided by Cu Eq in resources.
And this rating is cheap today. Look at Rex 10.5, Intrepid Mines 10.8, Discovery Metals (building a mine) 17, CuDeco 24, and SFR about 70!! Marengo is only about 3, but has a lowish grade Cu-Mo porph in a tough location and jurisdiction (PNG hills). Look at IAU on, RXM on and SFR on !!
And after the raising MNC is now cashed up for drilling, over A$30m in bank.
So what will LC resources be after the current 50,000m program? And after another 50,000m?
And the MNC numbers allow nothing for what might be found in drilling 3 large plays in Chile: the Vallecillo CuAu porphyry, the Camaron Au system (>10km), and eventually Isidro Cu-Au. And all these projects, like LC, are in vg locations to build mines.
Beyond all this MNC has Mollacas Cu leach project, a tiny resource, only 0.2b lb Cu in resources, but a powerful resource! For can produce say 25m lb pa Cu for 6 yrs at op costs below US$1 per lb, making gross cash flow of say 25 x (3.5-1.0 = 2.5) = A$m62.5 pa. Mollacas now going into feas study.
That?s enough excitement for an afternoon, back to blogging the Big Hitch in London. ?..Wish mum had remembered an Aston Martin Volante for my 21st.