Have been running a slide rule over a hotcopper favourite AVL, to look at purchasing some. I have come up with the following simple calcs, can anyone see anything glaringly incorrect with these?
14,000 tonnes of copper per annum $US1600 per tonne for copper And there are 2205 pounds per tonne
They have said it will cost them $US0.36 per pound to make the copper so 14,000 tonnes * 2205 pounds per tonne = 30,870,000 pounds 30,870,000 pounds * $us0.36 cost per pound = $US11,113,200
They can sell 14,000 tonnes at $US1,600 per tonne 14,000 tonnes * $US1,600 = $US22,400,000
So it will cost them $US11,113,200 to mine and they will get $US22,400,000 when they sell it. $US22,400,000 - $US11,113,200 = $US11,286,800
They have borrowed $US4,500,000 So interest will be about $US450,000 per year and they will give 10% of profit to the locals (schools, hospitals, etc) $US1,128,680 So profit per year should be $US9,708,120, about $AU16,738,137 at exchange rate of $0.58
They have about 167,000,000 shares on issue, and they are trading at $0.10.
So $AU16,738,137 profit divided by 167,000,000 shares is about $0.10 earnings per share.