for b2's eyes only

  1. 8,125 Posts.
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    The reason I like this stock is because of the amount of money they'll be earning from March, 2004 after they've commissioned Stage11 at Dikulushi.The calculations are-

    Stage11 based on 250k tonnes/pa throughput-$Amil
    19k tonnes Cu @US$1770 @ 0.66ER 50.95
    1.9mil ozs AU @ US$5.00 @ 0.66ER 14.40
    Cash costs @ US$0.40/lb @ 0.66ER 26.18
    Net smelter royalty @ 6.25% on Cu receipts 3.18
    Interest 9% on $A15mil 1.35
    Deprec & amort $A25mil over 6yrs 4.17
    Head Office costs 2.45
    TOTAL COSTS 37.33
    Net Profit before tax & minorities 28.02
    Less: 10% minorities(before HO costs) 3.02
    Net Profit/pa(with no tax to pay) 25.00

    They'll also be treating 100k tpa lower grade material that'll earn them at least another $5mil/pa.
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