I have been trying to come up with a value for IBG. Not sure if this is the best way as NPV is a more common way of valuing as it takes into account the time value of money.
Below is a analysis for Citronen alonebeing their major project:
Citronen
17,000,000 tonnes ore @ 8.3% Zn equiv.
= 1,411,000 tonnes Zn @ $600 USD per tonne profit.
=$846,600,000 USD
=$997,294,800 AUD ( @ 1.178 convertion from USD ).
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=$16.96 per share when fully diluted ( 58.8 million shares/options)
Of course I’ve just used $600 profit per tonne as a figure because I have no idea what it would be higher or lower. But with the share price currently over $5 it leaves alot of room for the cost of recovery to go higher before it brings the price/share down close to where it is now. And also the fact that there was $21m cash helps the estimate as well, but thats not factored in.
Anyone care to comment?
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