Hey Kalenn...good postIt is interesting to note Enterprise value...

Hey Kalenn...good post

It is interesting to note Enterprise value or Firm value is an economic measure reflecting the market value of AVB's whole business. It is a sum of claims of all the security-holders: debtholders, preferred shareholders, minority shareholders, common equity holders...being more more comprehensive valuation than MC, which only includes common equity...but not closely comparable to insitu intrinsic NPV on future revenue streams from AVB's forward production of 50k of Cu over the projected 10 years which currently values AVB at approx 90 cents per share fully dilluted...

So commonly the equation here is:
Enterprise value = common equity at market value + debt at market value + minority interest at market value, if any - associate company at market value, if any + preferred equity at market value - cash and cash-equivalents...

So a simplified way to understand the EV concept is to envision purchasing an entire business. If you settle with all the security holders, you buy EV...

In AVB's case using your post's analysis, because EV is a capital structure-neutral metric, it is useful here comparing these companies with diverse capital structures. Price/earnings ratios, will be different between the three companies with different leverage...also the point of EV is to neutralize the different risks, and costs of different capital structures between these three examples...

Enterprise values based on 600,000 tonnes year end target that you used...being

600,000 @ $490 (avg.) $294 mil EV...600,000 @ $1348 (SFR) $808 mil EV and 600,000 @ $1496 (DML) $897 mil EV...

As you say, all of the above valuations are achievable based on drilling out the existing discovered resources... and are conservative targets acheivable over the next 12-18 months...notwithstanding the fact AVB will make new discoveries on over 270,000 hectares of argueably one of the richest base metals provinces in the southern hemisphere... a 2 year scenario may well be a 1 million tonnes in ground and mining underway...valuations then would be significantly higher again i.e. 1 to 1.5 bill based on in ground EV...then current value in excess of 25 cents with a 1 to 2 year target of $1...Interestingly, coincidental with my net present valuations and insitu valuations [roughly]...without further major discoveries made by AVB...

As an aside great presentation at HK mining convention by TP...

GLTA LT's and DYOR...