Re: Quellaveco vs Schaft Creek
posted on
Jun 05, 2014 07:40PM
CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)
I see what you mean but he ended up with a valuation encompassing all metals using a reasonable price per lb of CU equivalent. It is a pretty good approach imo.
The last approach I used was to value just the gold (our 25%) based on a recent deal and got a result of $0.99/sh for just the gold in the 2012 RE. Someone noted that gold represented 24% of the BFS revenue stream so another round-about way to value all the metals would be this math: $0.99 / .24 = $4.12 This may be a "rougher" valuation method though than that used by clavin today.
Here are some more confusing math to think about.
Since gold is "24%" of the BFS stream. We will look at copper / silver / moly only then.
20 billion copper equiv x 75% (rounding up to make it easy.) = 15 billion cu.eq.
CUU owns 3.75 billion pounds of cu. eq. x 30 cents a pound.
$1.125 billion or $2.71 + Golf's gold value of 81 or 88 cents a share.
$3.52 per share.
Pretty close to my valuation earlier.
Like i said before. All these other deals requires acquirer to pay for construction later on.
Teck is arranging that for us.