Hello Tomato
So thats 90,000 tonnes to 60 meters or 900,000 +/- to 600 meters. At .84 carats/tonne = 756,000 carats x ($106 - $25) or $81/carat profit = $61,236,000 / 32,000,000 shares = $1.91/share.
Recovered over say 5 years = $0.38/year/share. If shares are valued at say 20 times earnings thats $7.60/share net present value just for the "blow" no other assets or income factored in.
The pipes announced last Friday were approximately 2.5 times larger. Optimistically, assuming grades, etc. are similar, those 2 pipes should therefore add another $19.00 x 2 = $38.00 to the market value of the shares.
So ignoring diamond price inflation of 6% year over year, fissure revenues, Angolan revenues, and exploration driven share appreciation, the market should assign share value resulting from revenue from these three pipes, if theoretically mined over the next five years, of $38.00 + $7.60 = $45.60/share.
This is very premature quick and dirty crunching, and both time lines and field results may be off, but you can get a sense of what we are looking at.
Regards |
