GREY:STACF - Post by User
Comment by
random88on Nov 19, 2006 7:45pm
196 Views
Post# 11710850
RE: Why the Price of Zinc is important to PAX
RE: Why the Price of Zinc is important to PAXWhat are you smoking?
The 45 billion dollar is the life time revenue of PAX revenue. If you assume that the mine life is 30 years. So the revenue is 1.5 billion dollars per year. If assmue, the production start in 2010 and cash cost is 50 cents and capital cost is 2 billion dollars with armontization rate and repayment of loan rate at 30% in combination. You basically, get a property can generate about 200 million dollar per year for 30 years for year 2010. Now, the caculation become easy, assuming 10% discount rate, the present value of the property is about 1.5 +/- 0.5 billion dollars.
I bought this one on Friday after selling most of my Uranium holding. I would not expect too much from this one, just tripple would be good. By the way, my way of caculation is rather harsh.