TSXV:CAV.H - Post by User
Comment by
junior_mineron Apr 23, 2008 2:02pm
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Post# 15001703
RE: Valuation...
RE: Valuation...The best way to estimate long term mineral prices is to take industry C3 costs curves find the highest cost quartile and put some margin on top of that say 20%. Largest mines in North and South America have production costs + deprecation at little less than $1.5/lb currently. I can't see much lower than 2/lb long term price using current dollars.
About BAJ, one should note the importance of by-products towards the end of minelife and beyound. They essentially remain the same as Cu grade decreases. Manganese grade actually goes higher. In the end it will be manganese mine with copper credits.