ProShares Short SmallCap600 T.SBB

Primary Symbol: SBB

The investment seeks daily investment results that correspond to the inverse (-1x) of the daily performance of the S&P SmallCap 600 Index. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the funds investment objective. The index is a measure of small-cap company U.S. stock market performance. It is a float-adjusted, market capitalization-weighted index of 600 U.S. operating companies selected through a process that factors in criteria such as liquidity, price, market capitalization, financial viability and public float. The fund is non-diversified.

ARCA:SBB - Post by User

ProShares Short SmallCap600

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Post by Runner5on Jun 02, 2011 1:37pm

489 Views

Post# 18662893

Deal NPV

The deal has $50m now, plus 22.5% of silver production. Using the following assumptions: current silver price of $36/oz for all years; production over 16 years (as stated in press release); no production above 190m oz; 5% discount rate

If the project is fast-tracked and production starts 5 years from now (likely unrealistic), the NPV is $908m

Starts 6 years from now: NPV=$867m
7 years = $827m
8 years = $791m
9 years = $756m
10 years = $722m

Compare that to yesterday's market cap of $880m and cash of $170m (giving the projects a value of $710m) and that gives very little value for Back River.

R.

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