OTCPK:CRZNF - Post by User
Comment by
cupricityon Feb 04, 2012 6:06pm
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Post# 19490954
RE: valuation
RE: valuation Carpe Aurum,
Not a bad way to put it except for 1 item. 15 year mine life would representive of the Measured and Indicated resource only, IE there is 5 million tonnes of M+I and my analysis we mined 340,000 tonnes a year which gives us a 15 year mine life.
Now there is another 15 years of inferred that has higher grade (up to 8 ounces of silver per tonne). And there is blue sky here like you wouldn't believe in terms of getting the size of this deposit exponentially larger. For now there isn't much point in doing all that drilling because there is more than enough dirt to justify a mine.
So if we use the inferred resource and ignore the blue sky (the market loves blue sky!) We have 30 years at After tax of (corporate tax rate of 25% in Canada) times 220 million or 160 million times 30 and you come up with 4.8 billion less the 100 million for capex.
Also if you put in a 8% discount rate we get an NPV of around a billion dollars. Wonder how much more silver is going to made on the planet in the next 30 years?