AISCIn their merger presentation, they have AISC target of .79 going forward for new company. This was before the reduction in TC, I think it will be .75 or lower over next 12 months and TC's are continuing to go down. It would surprise me to see an additional reduction in TC for 2018 due to lack of supply. 2018 and 2019 wouldn't surprise me to see under .70.
Lets just say .75.
450 million lbs for 2018.
Let's say 1.45 zinc (guessing will be higher).
1.45-.75=.7 cash flow per lb.
.7*450 million lb=315 million cash flow
315 * 7 cash flow multiple=2.2 billion
2.2*1.25 canadian adjustement=2.8 billion
2.8 billion/840 million shares=$3.33
1.45 likely conservative so is 7 cashflow multiple in bull market for zinc.
$3.5 here we come.
Plus we will likely do accretive acquistitions.
Once the deal goes through, the veil will be lifted and it's off to the races. Hold on to shares tightly. Good times are ahead.