OTCPK:CPPMF - Post by User
Comment by
Rational43on Oct 13, 2021 11:53am
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Post# 34001274
RE:RE:RE:Since Patrica Mohr left Scotia they have had no presence
RE:RE:RE:Since Patrica Mohr left Scotia they have had no presence"the analysts estimates for 22 and 2023 includes increased capex to build out Eva and for the 65 tonne ball mill installation"
Well let's hope not, or the analysts also don't understand IFRS accounting.
Capex doesn't reduce earnings, except through Depreciation, which doesn't start until the project is finished.
The depreciation would be a number far below the profit from the extra lbs at the price used by Scotia.
Capex would reduce Free Cash Flow, but not Operating Cash Flow.
Further, any debt modelling for increased interest cost would be offset by operating cash flow over the time periods mentioned.
There is zero credible model that can be built that would reflect a decrease in earnings with higher production and higher prices over the next two years.
Its simply analyst laziness. They won't make a change until they have to. I've seen it in every commodity bull run since 1998.