Currently Copper Fox is dead money but I believe this story will start to get interesting again once we get a clear picture of future plans and when the new resource model is released. This current corporate plan is basically taking the last 3 years of work plans on the project to update the numbers and models of the deposit. This is a huge event currently being worked on as we begin to discover the real value of this project.
First off, when assigning a value to the Schaft Creek property, we should be using the 5% discount rate at the "real options value" case as Elmer has stated to shareholders. Me personally, I have communicated with government and First Nation people in which no concerns were discussed regarding this asset. We are an advanced project (post-feasibility status) which is will demand a high monetary value for our share due to the level of development we are at. Our waste rock alone is worth 4.2 billion based on an NSR of 24.88/tonne.
We need to also factor in that half the metal in the ground (M&I resources) is not included in the FS economics. If include exploration potential, reduced operating costs, exchange rates, higher recovery rates, longer mine life, future metal prices during production years, etc.
So when realizing the true SC economics factoring everything above at the 5% rate and ROV case we are looking at an NAV of over 8 billion or higher potentially so I will accept 1.2-1.6 billion valuation in a asset sale/buyout for our share in ownership.
