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FOCUS VENTURES LTD. V.FCV

"Focus Ventures Ltd is a Canadian-listed exploration company. It is engaged in the acquisition and exploration of mineral properties located primarily in Peru. The company focuses on developing the Bayovar12 sedimentary phosphate project in northern Peru. Focus Ventures operates through two geographic segments namely Canada and Peru."


TSXV:FCV - Post by User

Post by BCdudeon May 13, 2015 7:41pm
160 Views
Post# 23726266

For what it's worth

For what it's worth
For what it's worth, Tim Oliver wrote a guest column in Brent Cook's Exploration Insights newsletter in March 2014 (over a year ago), where he did a back-of-the-envelope calculation that valued the deposit above $500 million. However, I can't recall if that was for 100% of the deposit (of which Focus only owns 70%) or for that portion whcih Focus owns.

Also, this was long before the initial resource estimate, where the resource ended up surprising to the upside farily significantly.

Specifically, this is what Tim Oliver said:

"I used available Vale Bayóvar and other data to project economic performance of a Focus operation. The exercise assumes an identical concentrating process applied to a smaller operation. We know FCV’s concession is smaller than Vale’s. For this reason I will assume reserves and concentrate production at one half those of Vale. I use a standard Net Present Value model with inputs I feel are conservative, based on my judgment and experience. The results indicate that Bayóvar could be a very robust and economic deposit, based on drilling that defines something in the order of a 195 million tonne resource. At a 12% discount rate, the operation would deliver a net present value (NPV) over US$500 million and an internal rate of return (IRR) north of 30%. Again, these numbers are solely based on my own economic model using my opinions and judgment, and incorporating what limited data is available."

Hope that helps.
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