what is ph worth?, page-2

citi says $1.5bn

I reckon $3bn based on resources

Reserves 1.3Moz gold, 7.0Moz silver, 1.9Mt copper (Resources: 3.7Moz gold, 15.8Moz silver, 1.9Mt copper

assumptions
1. 10% lose of product
2. long term cost of production (estimate is .85)
3. long term price for copper $1.50
4. profit discounted another 10% for risk of not producing forecast earnings.
5. Gold and silver including in cost projection

copper resources - 1.9m tonnes
1 tonne = 2,204lbs
4,187.6 lbs
discounted 10% for lose in production
3,806,909,091 lbs
long term price for copper = US$1.50
costs based on estimate '09 of .85
long term costs $1
profit $0.50
Total $1,903,454,546
discounted 10% for future risk
US$1,730,413,224

Gold
gold resources – 3,711,000 oz
discounted 10% for lose in production
3,373,636 oz
long term price for gold = US$800
capital costs are included in the total capital costs for the project
long term costs $450
profit $350
Total $1,180,772,600
discounted 10% for future risk
US$1,073,429,636

copper + gold resources = US$2,803,842,860
exchange rate US$1 = A$1.52
A$4,261,841,147
Capital cost of the mine = $1.3bn
Profit = $2,961,841,147


based on info on P20 of the annual report
http://www.ozminerals.com/Media/docs/oxiana_review_07_web-2d9f24d8-5164-426c-aa1e-2594fed5a587-0.pdf