This is expected in a porphry deposit covering miles. The grades are
continuing to go up as expected and the total reserves are increasing
along with the resource. Using shareknow or the JB method demonstrates
the huge share price at buyout is not pie in the sky. The question is:
Does Teck take it all? Some people are projecting a $3 share. To
achieve that the prices for the 3 year trailing would have to be cut
in half.
The JB method gives:
8.5B Copper $2.5 = $21.25B
500m Moly $16 = $8B
8m Gold $1000 = $8B
38m Silver $15 = $570M (1.5g/t?)
About $38 billion/400million shares = $95 a share @8% = $7.60
Add 4 times drilling @ 65cents
Total $8.25
Old projection was $7.87
38 cent gain on the drilling.
Using Shareknow: and adding silver (about $1) minus adjustments gives
us $59 a share.
Take 24% and you get 14.60 a share
add 65 cents for drilling cost
add 38 cents for the new results (size and grade improvements)
Silver $1
Total $16.63
This is just what we have currently. Because of the value Teck may have to take just the proven from us and buy the rest later. Take 25% off to allow for high grading and Mill revenue limitations and the numbers are still higher than what people Expect Teck to pay for us. How cheap do you think CUU will let this go for? The gross amount is $12.4 billion and a quarter of that is $3 billion. (This does not include the Rhenium. 1/2 to 1 billion worth.)
Go run your own numbers on shareknow and see for yourself.
