RE: cash flow estimates and target priceI have re-read the feasibility study in regards to costs as $32.80/ton all in seems very low, and perhaps they have quoted that cost net of all credits from the other metals in the ore. Therefore, true cashflow would only be based on the copper recovery.
In that case, to use my original framework, 2.86% Cu adds up to 57.2 lbs of copper per ton, at $3.50 per ton, with 1200 tpd, you net concentrate value of $240,000 per day. You get 92% revenues for the concentrate you ship, so that leaves about US$221,000 per day in revenues. Subtract the $40K per day in operating costs, and you have a net cash flow of US$180K per day or $200,000 CDN.
So depending on the more accurate cost assumptions you still can expect between 80 cents per share to $1 per share. Either way, that is a huge forward cash flow projection for a stock trading at $1.70 per share today.
cheers!
COACH247