For what it's worth, a rough value guess.If CYP can drill and prove up 5 million tonnes just in the open pittable portion of the deposit, and classify it in a PEA study, then with zinc prices of 1.60 per pound, we can try to figure value per share but this exercise has many variables and uncertainties since we don't know what the tonnage will be and what the metal price will be either. Let's guesstimate that the cost of one pound of zinc will be .50 cents all in with the silver and copper credits, and let's assume that the zinc price will be 1.60. That's 1.10 profit per pound of zinc EBITDA. At 10% zinc on 5 million tonnes, we get 200 pounds per tonne times 5 million which equals 1 billion pounds of zinc just in the open pit alone.
I billion pounds of zinc times an EBITDA profit of 1.10 per pound gives us 1.1 billion in profit.
If this turns out to be the case, then ask yourself just how much profit per CYP share would be realized over the life of this mine. We don't know how many tonnes would be mined each year, since that would be up to the operator. Will CYP remain as the operator of this mine in a JV deal or not? Maybe a deal could be done for X amount of exploration expenditures plus cash payments scaled out over a few years, with an option clause for a % carried interest at no expense to CYP.
These numbers are very appealing and Cypress is in a very strong negotiating position.
I see 12 cents by the end of this year, and 40 cents by the end of next year just for starters.
If a mine is built and put into production with high zinc prices, then the price can keep moving up steadily over the next several years.