GREY:VMSTF - Post by User
Post by
Tinmannon Oct 05, 2007 1:31pm
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Post# 13529965
Easy valuation says this is going higher...
Easy valuation says this is going higher...Give it 600m strike, 20m average thickness, 200m wide at 4 t/m3.
That's 10 million tonnes.
Would easily support a 3000 tpd operation. VMS would have 1/3 of this with zero capital costs assuming HudBay back-in...
1000 tpd (net to VMS) x 3% average Cu grade (I'm ignoring the other credits) = 30 tonnes of copper per day = 66,000 pounds. Give 'em $1.50/pound profit.
$100,000/day is what that would generate in earnings. Or $36.5 million per year. Easily worth 5x earnings... which would be $180mm or about $2.50-$3.00 per share.
That's a bare-bones valuation in my view. Easy buy here with another drill coming and more targets yet to test.