Hello Tomato:
You must have been a good student... you're on the money with your law.
As for your questions about Klipspringer, I understand SUF owns 100% of an estimated 35,000 hectars, and a couple of small pieces through an option or a jv with others (including De Beeres). As for your other questions, I have been leafing through a number of research reports by outside analysts.
Yorkton (John Hainey, Dec 16/97) has a share target of $20; estimates M1 at 685,000 tonnes, avg three carats per tonne at US$142/c with earnings of $2 per share a year.
HSBC James Capel, Sept 12/97; target $26; M1 est 2.7M tonnes at 3.11 carats per tonne at US$119/carat for a return of US$370M, with mining and processing costs at $10-$15/tonne above ground, and $25 underground.
TD Securities Sept. 18/97; target $29, based on cash flow multiple of 8.5 times forecast for 1998 after-tax cash flow and a discounted cash flow valuation of SUF's various assets of 624.6M -- $27.04 per share assuming 23.1M shares. M1 is est. at $3.40 per share after tax in 1998 rising to $4.50 per share in 1999. This is based on 455,000 tonnes at M1, at 3 carats per tonne, at $150 per carat, for a gross value of US$205Million.
Sprott Securities Oct. 20/97; target $25-$30 per share; goes over the same numbers as above, estimates M1 at $2.75 per share.
Hope that helps.
Goalie. |
