whats is worth ?

Purely hypothetical - Lets have a look at what amx might be worth to a suitor with a bid of $2.50/share .....

Note: this is a fairly crude way of calculating value and should not be used to make an investment decision , purely for general discussion purposes only.


Assumptions: (conservative)

resource of 4mil/oz @ average grade 1.6g/t (0.5gt cutoff)
cost to build the mine + infrastructure = $300mil
cash cost per ounce for extraction = $800 average
average price of gold over next 10yrs = $1300/oz
mine life - 10yrs

cappex cost per ounce = $75/oz (300mil cappex / 4mill oz)
cash cost per ounce = $800/oz (extraction)
Bid price @ $2.50 = $150/oz (what they paid for AMX's gold in the ground) (2.50 x 241mill shares / 4mill.oz)

Total cost per ounce = $1025/oz
Net profit = $275/oz before tax (28% profit margin) **remember this is for only $1300/oz, and cash cost of $800/oz - both of which are unlikely metrics**

Over 10yrs mining at a rate of 150koz/yr ,
Net profit = $412 million before tax or $41.2mill annualized. **Obviously this would be much much higher with a gold price above $1500/oz. And the mine project should last well over 10yrs. So its value $$$ +++ for a suitor at $2.50/share

Now , this is just for konkera, before you add in any premium for the rest of the batie west province and any new deposits that could "bolt on" to the existing project. So by my reckoning even at $2.50/share , amx is a very worthwhile acquisition and totally viable.

DYOR of course - my assumptions and calculations could be totally wrong. Again , this is for discussion purposes only.

If you have anything to add or can see where i've made a mistake , let me know - I only rushed through this in about 10mins this morning with a hangover.....(too many vino's!!)