APT Price? - Junior Miner... They need to get more explicit on the NPV Assumptions
If anyone calls IR today (I'm slammed) find out the following and report here:
- LT & ST APT Price
- Confirm that NPV based on only 11.5 years of probably reserves (likely)
- Is this based on 100% or 75% Woulfe ownership of Sangdong (likely 100%)
Junior Miner - if you update your model today let us know what you infer for an APT Price.
The pre-tax NPV8% is $400M today, likely based on an 11.5 year mine life, likely due to Probable reserves.
Remember that the Ross Glanville valuation report assessed a post-tax NPV 8% at $200-$400M at APT $375 and 21 year mine-life using a 50% REDUCTION TO NPV to account for risk because prefeas/feas had not been completed. Thus, we could infer that using Glanville parameters the NPV8%-APT $375-post-tax-21-year-mine-life is now $400-$800M or $600M for the mid-range.
From $600M you need to adjust for 75% Woulfe ownership and subtract debt for NPV to shareholders. This still gets us to around $300M as NPV8% to shareholders. ([75%*$600M] = $450M less ~$150M in debt).
Let me know your thoughts. The wording on the Glanville report is quite fuzzy too.