Capstone Copper Corp T.CS

Implied Copper Price Based on June 16th Stock Price.

[BBTYstocks]

Capstone is still undervalued. And once they get SD running, it will very much so.

[BBTYstocks]

Forgot the link to the graph https://pbs.twimg.com/media/E4BWO3sVgAIxqBi?format=jpg&name=medium

[maldwyn]

Maybe I'm dense, but what does 8% NAVPS mean ?

[BBTYstocks]

Good question, I'm not sure honestly, 8% of NAVPS would be a pretty small number. Using a standard P/E ratio makes more sense to me. Scotiabank leaving out some of the logic I think, but whatever basis they used, its a good comparison to other miners. Also, they must be making some big assumption on TECK for it to be so undervalued, similiar to capstone assuming SD is running (they show with

[BBTYstocks]

Well I found that mining kind of has its own NAVPS. See below: Asset NAV is the value of the company’s assets, which in mining is its mines. This is calculated by projecting each mine’s after-tax cash flows, discounting it by an appropriate discount rate (5-10% for precious metals), then summing its cash flows to arrive at a present value (AKA NPV or NAV).

[GuyMining]

That's the discount rate.  Most base metals companies will have 8% and precious metals companies are 5% typically.  Riskier investments (perhaps in tough jurisdictions like the DRC or if they are using an unproven technology) could see a discount rate of 10% or even 12%. GuyMining