TSXV:CAV.H - Post by User
Comment by
mining_pays_my_billson Nov 05, 2014 10:26pm
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Post# 23100378
RE:Just look
RE:Just lookBAJ value is 10% of the assets. This does not include the cost to build and commission the mine. The 1.75B or whatever it ends up costing includes indirects- labor, the cost of keeping workers in a construction camp and feeding them, and flying people in and out, etc. This is a cost that the owner of the mine assumes, he cannot pass that on to the shareholders or claim any residual value for it. When estimating the net asset value of BAJ you have to take total cost (which we don't know yet) and deduct indirects. It will be something like 900M to 1B$ is my guess. 10% of that is 90M$. 90M/350M shares, is about 25 cents per share at the time construction is complete. After that we can use NPV to assign a value to the plant because that takes into account cashflow and OPEX.