Butitlow, im no trained analyst but i learnt how to value stocks...

Butitlow, im no trained analyst but i learnt how to value stocks over 13years in the market and ive got a knack for selecting and making good money from the right small cap mining stocks.....BTR is the bomb my friend.

You need to ASSUME all the time with mining stocks bcoz commodity prices are subject to circa 30% upto even 50% swings downwards in recessionary times ,and likewise upto 100% swings back up or more

Thats why MOST ppl in the know purely TRADE mining stocks over the medium term due to the VOLATILITY inherent in commodities

A trained analyst would pretty much setup similar production scenarios and dilutionary scenarios and arrive at some consensus NPV per share using discounted cash flows; EBITDA per share; or EPS figure.

Thats what ive done

From my analysis you can get a ROUGH idea of how UNDERVALUED this company is relative to its earning potential of huundreds of millions

Production in copper miners as you can see from giant mid caps such as EQUINOX (EQN b4 it was taken over abt a year ago) and even Sandfire (SFR) suggests that 75-100tonnes is the go to start up for a large deposit. EQN i believe had a MASSIVE resource albeit at lower grades but MASSIVE in africa. They produced circa 100tonnes and expanded their plant further to be avble to produce more just b4 being taken over.

Look at DML ,look at TGS , look at SFR, look at EQN.....the trend is for startup of circa 50000tonnes, then upgrading to 75,000 then 100,000 tonnes. One hundred thousand tonnes is BIG BIG BIG money! And the large end of town in terms pf production for mid-caps. Even Rex Minerals (RXM) with their large find, aim to start at around 75kt to expand to 100kt pa from memory. The size of a plant for that kinda production and the CAPEX is large...BUT, we are looking like a very HIGH GRADE type of mine ala sandfire, whilst companies such as EQN are lower grade and very large resource

Im no EXPERT in terms of mining engineering, so i dont really know

All i can do is compare us to the others that produce. 100,000 tonnes+ is HUGE and HUGE money!

Looking at the calcs , 100,000tonnes*2200*$2margin* $1 parity *0.75 for 25% tax in africa = 330mill post tax cash flows; Circa 300mill post depreciation for a circa 1billion dollar plant. Add Perkoa and you get about $320mill in profit post tax.

Thats HUGE money per annum and affords a mkt cap of close to 1billion for that kinda money made per annum!

*Obviously theyll need to do 2more capital raisingd AT LEAST
or possibly 3 . Assume that taking the AVERAGE of all 3 prices of the seperate cap raisings will be at circa $3/share

Bottom line, you look at the PROFIT of circa 300mill per annum and compare it to the market cap of companies that make similar money. Post a couple more cap raisings we'll have a mkt cap of circa 1billion i reckon once its up and running. So theres plenty of upside !