Post by
estebancaballo on Sep 05, 2014 1:14pm
NPV
According to the PFS the Net Present Value (pre tax) of TMM is:$1.5 Billion. Who thinks Anto will just walk away from that?
Comment by
estebancaballo on Sep 05, 2014 1:47pm
The projected metal prices used are probably very conservative given the growing demand for base metals worldwide. Also the true value of DM must include the DM properties owned 100% by DM. All imho.
Comment by
CashIsKing16 on Sep 05, 2014 2:40pm
It's not as simple as that. You have to look at other factors, namely what you have to put up to risk potentially earning the $1.5 billion. i.e. what is the capex, how much $ needed for further drilling and completing the FS, permitting issues, etc. Is it risking $500 million in capex to potentially earn $1.5 billion? How about $1 or 2 billion in capex?
Comment by
CashIsKing16 on Sep 05, 2014 2:42pm
Just as important, what metal prices were used to arrive at the $1.5 billion NPV.
Comment by
estebancaballo on Sep 05, 2014 3:59pm
My understanding is that the PFS takes these issues into account. For any major mine you need to invest large sums....of course it has to be worth the investment but that is what the PFS is intended to show. The big question is will global demand for copper, etc. go up. I am convinced it will. Can TMM make money in such an environment? Of course. All imho.
Comment by
estebancaballo on Sep 05, 2014 4:47pm
The fact is that the cost of commodities will have to go up to reflect the increased cost of getting them out of the ground. This has not happened for a while as we are in the middle of a global recession. Recessions do end. When this one does prices will go up. Forward looking investors know this and invest accordingly.