RE:RE:RE:Disappointing Economic Analysisbloomfield18 wrote: Nosleep,
We can't know the end game numbers at this point. The resource will certainly increase, the grade will probably increase as well. But the price of copper is a true pivot point. As copper drops from $3.00 to $2.50 the project value plummets from $657 million to $123 million at $2.50 copper at a 10% discount rate. Copper is now at $2.68 lb, There are no guarantees copper will go to $3 and stay there.
Then there are 786 million shares out. This will also continue to rise. The company may have to take on more partners, or increase the share of existing partners to advance the project with additional financing. Any loans will require a high rate of interest. Perhaps 10% or more.
You're right that the resource will continue to increase, but so will everything else.The lack of drilling news is also a factor. If there are 12 rigs turning, where are the results from Kakula West? Are they high grades that many expect? Or are grades moderate? When news is slow to arrive, this often signals results may not satisfy expectations. The heavy share dilution, at 786 million, makes this a difficult lift.
U think 80 billion pounds of highest grade in the world copper is only worth $123mil rofl
who cares what some npv bs current valuation is. Most ivn shareholder are looking at the value when this is in production churning out billons in profits a year