Prescient presentation - Petmin

SIVAS
$ 1.40
$ 1.20
$ 1.00
$ 0.80
$ 0.60
$ 0.40
$ 0.20
$ 0.00
53
Value of Copper Companies on a US$/lb basis
Exploration
Companies
Potential Valuation Based on an EV/lb of Copper in the ground/production
Production
Companies
Metric $/lb
RCR
(100Mt's @ 1%)*
50 000tpa**
Average exploration Co. 0.22 $486*
Average Production Co. 0.80 $1 764**
Exploration Range 0.04-0.54 $95m - $1187m*
Production Range 0.21-1.17 $463m - $2579m**
Real Option Valuation $822m
Exploration company potential values are based on delineating 100Mt’s @
1% and production company values are based on a mine producing 50 000t
of Copper per year.
• Exploration figures were calculated using the copper equivalent
resources for each company. This meant that if company’s had
other minerals (i.e. Zn, Au, Co) found in their deposits, they were
converted to a copper equivalent using forward prices for the
applicable commodity. The economic value for each company was
then divided by the total copper equivalent of their resources to
determine the EV $ per lb in the ground
• Production figures were calculated by using the copper equivalent
for each mineral produced. The production of other commodities
(i.e. Zn, Au, Co) was taken into account and a total copper
equivalent was calculated using forward prices for the applicable
commodity. The economic value for each company was then
divided by the total copper equivalent of production assuming a 20
year Life of Mine to determine the EV $ per lb in the ground.
• Production LOM Assumption = 20 years
• Forward prices ($/lb):
• Copper = $3 ($6614/t)
• Cobalt = $15 ($33069/t)
Assumptions
• Gold = $17 480 ($1115/oz)
…turning …Committed development to projects growth, …exceeding into dedicated cash generative to expectations
value assets