GREY:NEVDQ - Post by User
Post by
Notgnuon May 06, 2021 1:29pm
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Post# 33141774
Let's try a simple valuation
Let's try a simple valuationFor fun let's just say that nobody wants a .5% copper, permitted, drilled, and planned open pit copper property at all .... so zero dollars (as opposed to maybe 1 billion dollars or 50 cents a share.)
Okay, then we have a brand new underground mine that is just starting to mine 2.2% copper at the highest copper prices ever. Well before year end, pobably 3 months before 2022 it will be processing 5000 tons per day, giving an effective annual production of 65 million pounds of copper.
The cost of mining that copper (all in) is $1.86 per pound.
The cash-flow will therefore be (at today's copper price) $2.74 per pound, which equals $178,000,000 per year (underground only
Times that by a 6 X multiple (pretty low) = $1.069 billion
Add in $100 million from warrants = 1.169 billion
Divide by fully dilluted shares (2.3 billion ) = $0.51 per share
Add back the open pit at whatever you see fit and get ???
Am I worried about 26 cent shares going down? Hell no.
Cheers,
Notgnu