Are these calcs right

  1. 256 Posts.
    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.
 
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