RE:RE:What is the new target price at copper 4.25?JWall, I am long on OCO. I also have similar targets. However I hear often that the majors do not pay full copper price and there is always a discount. Do you feel that lets say if copper is 5$ in late 2022, a major will value us with 4$ copper or more like 3.75$?
jwall34 wrote: At $3 copper historical NPV was 1.6B - divided by ~200 million shares @50% of NPV buyout, so a target of roughly 4$, or 5$ if exploration had some success and raised NPV to ~2B
Now, with a base case of 4$ copper, historical NPV roughly doubles to 3.2B, or 8$/ share at a 50% buyout. Add in what is likely to be a significant increase in the size of the resource based on the 3DIP and the NPV further increases.
Personally, my buyout target is roughly 10$ per share, or $2B buyout amount to Oroco. But a bidding war for the asset, high grade drill results from Brasilies, or drill results that double or triple the high grade zone of the deposit could push this even higher.