Bullboard - Stock Discussion Forum Vulcan Minerals Inc V.VUL

Alternate Symbol(s): VULMF

Metals & Mining Industrial Metals & Minerals

Vulcan Minerals Inc. is a Canada-based precious and base metals exploration company, which is engaged in mineral exploration on properties in Newfoundland and Labrador. Its projects include Colchester, Gander Belt Gold, Red Cross Lake, South Voisey’s Bay, Carbonear and Atlas Salt. The Colchester Copper Gold Project is in north-central Newfoundland. The Gander Belt Gold Project extends... see more

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TSXV:VUL - Post Discussion

Vulcan Minerals Inc > A Valuation View

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Post by Copperking102 on Feb 26, 2022 12:33pm

A Valuation View

On SALT, from another board. Take it for what its worth:

I have been watching this company for a while now, and as I have experience with valuations I have played around with some NPV scenarios to model possible buyout prices. Assuming -6 million tons annually production - Profit of $40 per tonne of sale - a 3% royalty on sales paid to $VUL - No cash flows in first 2 years as mine is constructed -25% effective tax rate - $125M in capex to build the Mine - 30 year investment horizon - 8% required rate of return by an acquirer A buyout of $1.47B CAD would be result in a positive NPV and be acceptable to an acquirer. Which translates to around $15 per share. A completed bankable FS would lay out many of these assumptions and confirm such a valuation.

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