Maintenance,
Here's some number crunching questions for you. On Stockwatch someone posted the following numbers he got from WSP at PDAC:
Operating Cost ($Can/Tonne milled)
Mining .....................$Can 45.00
Processing................$Can 20.00
General & Admin......$Can 21.50
Total.........................$Can 86.50
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So, to get from there to a target price based on, say US$300 tonne kimberlite.... Am I on track by doing the following?
First let's make the $86.50 US funds, so multiply by .687 gets you $47. Subtract that from US$300 and you have $253/tonne.
Multiply that by 300 tonnes and then 365 days/yr= $277,035,000/yr.
Now divide by the shares outstanding- but I'm not sure on that one anymore after RT raided the cookie jar again. 52 mil fully diluted? I'll use that-- that works out to $5.33/sh earnings. Divide by .68 for WSP's 68% and you have $3.62.
But you have to do something about the capex cost for the plant. Can WSP get a loan for the full amt.? 1/2 and 1/2 stock? At $230mil US for the plant and a stock price of say, $5: $156.4 mil US is WSP's share-- that would take about 45 mil more shares. Ayyy! Let's forget that route and figure they'll get 100% financing. So we have $3.62 earnings that we have to discount, a skill I haven't acquired.
Figuring a p/e of 10, we have, before discounting, $36/sh...but that's US$, isn't it, and we need to convert back to C$, so would that be $52.40/sh? Well, am I on or off course? |
