Pacific Booker Minerals Inc V.BKM

What is BKM worth?

[$500,000Salmon]

There is a "Working Model" used by Pacific Booker, in which one can plug in mineral prices, ore recovery %, rate of return, cost to build the mine, fuel costs etc.

The expense estimates are 10 years old and so will probably be a bit higher, even though fuel and energy prices maybe lower than when they put this cash flow model together. 

I get a near zero present value of only $2 million when I use the following ore prices, discount rate of return and ore recovery.

Copper...  $1.60 USD ... recovery 90%
Gold........ $600 USD ... recovery 74%
Moly.......  $12 USD .... recovery 50%
Silver ....  $7 USD  ....  recovery 74%

Canadian dollar 80 cents to the US dollar
Discount rate of return 5%

I do not expect to ever see mineral prices this low again. This is especially true for copper, as current projections seem to indicate a potentially severe shortage of copper.

Anything above the prices above should be profit.
I understand that we expect to recover approx 1.4 billion pounds of copper.

Today's prices are:
copper $4.23 USD
gold  $1733 USD
moly  $12 ?
silver  $26.85

Using today's ore prices the working model gives a value of:
$3.459 Billion = $170 per share with only 20 million shares fully diluted.

This makes sense if we understand the extra money just from copper:
$2.63 USD ($4.23 today's price- $1.60 breakeven price) x 1.4 billion pounds of copper = $3.682 Billion USD
This is equal to an extra $4.655 Billion Canadian 

Thus, at todays prices, just on copper alone, we will receive $4.655 Billion more Canadian over the life of the mine.

Of course $4.655 billion over the 20+ year life of the mine, means that this number needs to be discounted to determine today's value. Still, it is easy to see why the shares are potentially worth so much more. Of course we need to receive the provincial permit before we can even consider such a value. That said, it is nice to know what the potential is.

[BKMforthewin]

Thank you. So based on today mineral reserve valuation, and the OS shares, we could/should be at $130 / share? 

[$500,000Salmon]

There are obviously other factors, such as I am not sure that the provincial mineral tax of 13% on profits has been calculated into the model or not. Breakeven Costs The bottom line is that it appears that the breakeven requires approx $3.5 billion in ore revenue. Perhaps now 10 years later it is closer to $4 billion. 1.4 billion pounds x $1.60 per pound of copper x exchange rate at the time of

[uptowndog1]

Great post 500,000 Salmon, always enjoy them, I heard there's some meetings going on March 15-16, whether or not we will be brought up ??????, here's hoping, Cheers to all BKM share holders

[uptowndog1]

I guess these meetings on March 15-16 have nothing to do with BKM or BKM would have give a NR by now , Government as in NDP, still blowing smoke up our butts, Seems to me when ever reading the Vancouver sun there more interested in POT than mining, LIKE one whole page on pot, WTF, Covid will soon be a thing of the past, same as the rest of the nasty Dung that has been set in our country, NDP and

[BKMforthewin]

I've spoke to John of BKM/PBM a few days ago, and though I requested nothing said unless it public knowledge, he mentioned the facts regarding the new means FN and GOV must communicare, HUGE STEP forward these may  be the cheapest shares now f '