Re: Spoke with Management about BFS/Vette
in response to
by
posted on
Oct 27, 2012 10:45PM
CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)
The price of a share isn't just some number on a screen. It represents the value of a company in terms of its fundamentals (assets and future earnings etc.). One way to value CUU is to look at the NPV of SC, as it's our main asset.
From the 2008 PFS:The PFS projects a $2.76 billion NPV after recovery of capital costs and before taxes discounted at 8%, and a pre tax cash flow of $11.37 billion over a 22.6 year mine life.
http://www.copperfoxmetals.com/s/NewsReleases.asp?ReportID=405737&_Type=News-Releases&_Title=COPPER-FOX-files-an-amended-Preliminary-Feasibility-Study-on-SEDAR
Since then we've nearly doubled our resource where as inflation in the industry hasn't doubled. Infact recent posts have shown that iron ore and steel have actually recently been dropping (which gives Teck more of a reason to want a copper play by the way). Even assuming we kept the same NPV (i.e. doubled our resource and inflation has doubled - let's call the NPV the same, more or less) there's no value being put into Teck's cost of putting into production, financing, 4 year clause, rising metal prices (if you're gonna assume inflation affects CAPEX but not the pounds in the ground then you're being unrealistic) etc.
It doesn't make sense to me that we would spend 5 years to keep the same price, dillute shareholders and get no additional return even after all our drilling. We're worth more today than we were 4 years ago is what I'm saying - do you have any reason to think we're not?