RE:RE:RE:Copper and Cobalt Reserve and resource of KCC mine
Good one Nelson. I think we timed discussing then you publishing your "back of napkin valuation noodling" with very good timing.
I prodded you with good reason. I wanted folks to be reminded of the hidden value here again as I determined, frankly, that most would have been scared witless over the past 3 months, particularly and all the while, we were still buying - me at 46c, then 44c then again at 50c after the tax-loss turn on 27th Dec; that being the last Trading Day for claiming for 2018.
A few points to concur: yes, your numbers are very Conservative so leave plenty of upside for better realised Cu and Co sales prices as well, C1 Total Operating cost should keep coming down as Production keeps ramping up and as Sulfuric Acid credits also kick in.
Lots of discussion around country risk etc. From my experience, and on an NPV valuation basis, Bay Street & The City Mining Analysts would in the main, likely discount for Build & Ramp-Up Execution Risk as well as for DRC Country Risk anywhere from 8% up to 15%.
Given the political situation remains largely calm (much like when the Zimbabwe Army backed Emmerson Mnangagwa in a "soft coup" to get rid of Mugabe), and given we are fully backed by Glencore (like it or not...) and that we are now mostly a fully constructed Operating Mine ramping up to full production, I would argue an 8% discount is an appropriate one.
Our real money will be made in 2 - 3 years time, and like you, after significant averaging down, I'm not in this for the pennies. I'm happy with that timeframe as from this point, and confident things will continue to improve, it's all gravy from here.
Thanks again for all your input and good luck to everyone who's perseverance and patience looks now, with hindsight, to all have been for very sound reason.
These are my views only. Thanks for reading.