valuation, page-8

Hi Miner,
How long is a piece of string?

A reasonable amateur approach to working this out might be as follows.
From announcements,
1. reserves in tons[pna is kind enough to publish data on "cu eqivalents]
2. cash costs of production[ditto above]
3.last reported corporate and interest costs
4.copper price[might as well use spot here]
5. projected mine life

put this all together and you get a total, "life of mine" profit.

Pick a cost of capital, I like 8%, to account for the opportunity cost.
Work back from your projected "life of mine" profit, hey presto, what it is worth. Then divide by number of shares.
Correct for exchange rate.
This is easy for a mature project like Phu Kham.

Repeat process for mines in the pipeline.
Use your best guesses for parameters[remembering to account for the time they will take to come on board,ie longer opportunity costs. The amount of capital to build these mines, should be deducted from from your "life of mine profit].

As far as exploration, that almost verges on "art" , rather than finance.

Haven't been thru the process in months, but , back then, Phu Kham came out at about 40cents[lower cu price, but also lower A$ then]

cheers

any criticism cheerfully accepted.