Comparisons are odious at best, however, the only other discovery I recall that had long drill intersections in excess of 1% copper and 1 gm/gold per tonne was Grassberg, located in Irian Jaya. Grassberg.
To give you an idea of discounted NPV, use a size of 1 billion tonnes, a copper equivalent recovered grade of .5% copper, and a price of say $3/lb. This translates to an in ground value of $30 billion dollars. I would be surprised if operating costs exceeded say $7/tonne mining and milling, against a value of $30/tonne. At 100,000 tonnes/day (30 year mine life), the cash flow is $800 million/year before depletion, depreciation and taxes. Now consider start up 3 years from now, a capital cost of 1.5 billion, and the starter pit centered on the high grade core giving an 18 month payout of capital costs. What does your math tell you III is worth per share today and down the road? |
