OZL 0.00% $26.44 oz minerals limited

citi says $1.5bnI reckon $3bn based on resourcesReserves 1.3Moz...

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    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

 
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