"I'm still thinking that over $7 is right but would be happy with less considering the EU and all that garbage. I'd still want some residual value in the co. "
I believe the $7 for CUU is a reasonable number given what management have found and done. My revised NPV based on 150 K operation, $3.00 a lb copper, production cost of negative $0.74, and a discount rate of 8% shows the NPV for SC to be $5.6. Just throw in a dollar or two for the rest and $7 is pretty reasonable:
| Share Value Estimates based on NPV |
|
| Daily Processing MT |
150,000 |
| Recovery |
88% |
| Copper grade % |
0.50 |
| Copper/day MT |
660 |
| Copper/day lbs |
1,452,000 |
| Copper price ($/lb) |
$3.00 |
| Production cost (value of gold silver moly) |
($0.74) |
| Revenue/day $M |
$5.43 |
| Days/year |
340 |
| Revenue/year $M |
$1,846 |
| CUU's share 25% $M |
$462 |
| Total OS shares |
380 |
| NPV per share |
|
| Disc rate: |
8% |
| Years of cashflow: |
20 |
| PV ($M): |
$4,532 |
| Capital cost: ($M) |
$4,000 |
| CUU's cap cost: ($M) |
$1,000 |
| NPV Per share: |
$9.3 |
| Tax rate: |
40% |
| NPV Per share after tax: |
$5.6 |
JMO GLTA!
