William,I am not seeing the huge benefit you attribute to...

William,

I am not seeing the huge benefit you attribute to this... If it were really profitable, Kagara wouldn't of gone under.

Furthermore, MOO only recieves 2.5% of sold metal up to 550kt and 2% for all after that.

Not to mention, the mine only contains (at maximum) 42kt of copper?

Just as a valuation:

_EVEN_ if they smeltered it all themselves...

Copper is ~8k/tonne (~$3.7/pound)

42000 * 8000 = 336 million.

Thats your maximum value for the project.

Lets say thats a mine life of 5 years (fairly short):

NPV then becomes 212.28$ just on pure profitability.

ASSUMING the costs are half, that puts us at 106million NPV over 5 years (10% discount rate).

Finally, MOO only recieves 2.5% of this,

so NPV for MOO = 2.6million

Thats using very optimistic numbers (other than the price of copper and total tonnes, they could both rise, and price of copper could fall)

Combine MOO cash + mine NPV = 5.6million~

So EV of their other ventures are currently priced at 5million.. which for me is not undervalued or over-valued at this point as the strip-ratios for their Confederation drilling seems fairly bad at current..

(most significant intercepts are 1-1.5% CU @ 2-6m intercept) located at 80-180m below surface, giving strip ratios of 10+..

Not horrible in copper terms but not great either IMO..

ofcourse this was all done fairly quickly so feel free to correct me if I have over-looked something..