Post by
Teatimenow on May 26, 2010 5:55am
can anyone help me understand
why ICI trades with such a huge discount?
i understand it`s not Canada it`China but:
Detour Gold for example trades above it`s pre-tax NPV at 850$/Oz, while ICI trades 40% below it`s 750$/oz AFTER-tax NPV (both5% discount)
ICI`s NPV at current prices is about 450 to 500 million, not including the new zones. CAPEX just 100million to get it in production. so, they could simply do a larger PP, 65million shares at current prise and built it!
So it looks to me that the question is not if this will be a mine, but only when and how large will it be when they start building it up!
Am i not aware on any risk? pls advise
thx
Comment by
watchout34 on May 26, 2010 4:03pm
It is the China risk, whatever that is.
Comment by
watchout34 on May 26, 2010 4:07pm
Look at SVM, they are starting to invest outside of China just to spread the risk and get a higher valuation by the market.