Xstrata'a recent bid for Exco's Cloncurry copper assets valued the copper in the ground at 15c/lb or $330/tonne. That was the highest price paid in any copper deal for the last 12 months. However, that included a high premium due to the fact it was within ear shot of Xstrata's own deposit and infrastructure. Indophil's resource is priced at 2c/lb ($44/tonne) in the ground but it has political hurdles to overcome. If we use the global average of 8.5c/lb, then Yellowstone is valued at circa $100M. As I said, not bad at all.
ROS Price at posting:
35.0¢ Sentiment: LT Buy Disclosure: Held
