Giving value to Orvana's Resources (napkin math)Orvana, should trade more to the changing valuation of copper as it represents Orvana's biggest asset.
Orvana has 3 properties which are located in Bolivia, Spain and the U.S (Michigan)
Bolivian property contains Gold, Silver and Copper. Aug 20/2010 news release states this property contains a total of 150,000oz of gold, 5,000,000oz of silver and 70,000 tonnes of copper (70,000,000lbs of copper)
Spain property contains Gold and Copper, Orvana website states 970,000oz of gold and 115,000,000lbs of copper
and inferred resouces of an additional 1 million oz of gold and approx 100,000,000lbs of copper.
Copperwood property (United States) Dec 14/2010 news release. Copperwood has 1 Billion pounds of copper and an additional 1 Billion pounds of Copper indicated and another 1 Billion pounds of copper inferred. For a total of 3 Billion pounds of copper
If we add up all the resouces that are inferred and indicated to be proven and measured, Orvana has a total of approx
2,000,000oz of gold $1400oz total $2,800,000,000 or $2.8 Billion
5.000.000oz of silver $30oz total $15,000,000 or $15 Million
3,250,000,000lbs of copper $4lb total $13,000,000,000 or $13 Billion
Orvana's biggest asset is Copper at todays prices. followed by gold and silver. Orvana should be following the price of Copper more than gold. I know that the Copperwood property revenue will not come online until 2013. The prices above do not indicate mining costs, royalties, taxes, ect...........
Based upon the above information Orvana has mineral assests totalling close to $16 Billion but trades with a market cap around $500 million. I believe that there is still a great potential upswing in price.
Orvana is still looking to expand and define its resource estimates and as such I would not be surprised that these resources are further expanded.
With every 1 cent rise/fall in the price of copper, Orvana's value changes by $32,500,000 or $32.5Million
With every 1 cent rise/fall in the price of gold , Orvana's value changes by $20,000
With every 1 cent rise/fall in the price of silver , Orvana's value changes by $50,000
Anyway this is my napkin math. I used round numbers in my calculation and have actually undervalued the copper play by around 10% as copper is currently selling for over $4.36lb
Best of luck everyone