OXR oxiana limited

OXR versus KCN

  1. 3,800 Posts.
    If you compare OXR and KCN:

    KCN
    Share price $2.70
    Shares Issued 63.1 million
    Market Cap $193m

    OXR
    Share price $0.30
    Shares Issued 419 million
    Market Cap $144m

    If you:
    1. Ignore the OXR copper asset
    2. Assume gold project fundamentals of Sepon and chatree are the same (same sized plant, ore grade not too different, both low strip ratios).
    3. Ignore higher sovereign risk in Laos compared to Thailand.
    4. Ignore cash and debt levels of each company.

    Drawing a line thru KCN price action, this would project that OXR share price should reach 193/144 x 30 = 40 cents after gold production is fully commissioned and orebody reconciliation is confirmed.

    So how much is the copper asset worth? considering there is not yet a feasibility study finished, no financing, etc.

    If I add 20cents (a guess) for the copper considering its evaluation/development status, I can see 60 cents in OXR in a 9 to 12 months time.

    Can anyone add to/comment on this appraisal?

    acturtle
 
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