Not a Cash Cow?Our new poster MK saids at current prices DSV is not a cash cow. Well let's have a look at the numbers shall we. According to the latest PF the all in sustaining costs to produce an oz of Ag is 12.80/oz for the first 12 years of production and 13.60/oz over LOM. Annual production is going to average 33Moz/year. Using these figures average annual profits would be ( using 13.60/oz LOM costs ) 25-13.6 = $11.4/oz to the bottom line x 33 Moz per year = $376M US per year.
If we factor in another 25% dilution of the stock for capex expenditures to give 500M shares. The cash flow would work out to be 376M/500M = .75/sh. An average multiple of 10 for producing mines will yield $7.5US/sh. So that's $7.5US/sh just using current prices. This isn't counting any further exploration potential. If Ag prices go to just $30 we are easily looking at over $10US/sh for the cash flow. NOT A CASH COW??? PROOF MoneyK doesn't know what he's talking about. DO THE MATH MK before you post your nonsense. LMAO