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Gold/Mining/Energy : Imperial Metals (IPM.T) -- Ignore unavailable to you. Want to Upgrade?

To: teevee who wrote (595)	8/15/2010 11:10:42 AM
From: refugee investor	Respond to of 1366

I would like to see $100 a share too, but afraid it is a stretch. With luck the RC resource will turn out to be even bigger and even better, but at this point that is speculation. Imp estimated in May that the RC resource might be 6 billion pounds of copper. What might that be worth? Assume copper sells for $2.5 a pound, you get $ 15 billion, Imp gets 88% of RC of revenue, so that leaves 13.2 billion. Assume Imp does take a partner which puts up the money for the mine and gets a 50% cut, also maybe picks up the tab for half of the operating cost, that leaves 6.6 billion. Subtract taxes, 50% operating costs and everything else--no idea but I will say 50%--and you get 3.3 billion. The mine might run for 30 years, so on average Imp might get $100 million a year income. Very nice but not riches beyond conception..and of course the mine will not be in production for another four or five years. I am sure the above is full of holes, just a starting point. Do think Imp's book value should be $25-$30, but that is my opinion. A year ago the market was trading Imp for less than their cash at the bank.