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Anonymous
Valuing a mining company 2017-03-01 11:26:35 Post No. 1827745
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Valuing a mining company 2017-03-01 11:26:35 Post No. 1827745
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I need your help in valuing a mining company. Basically, the company has a number of projects, potential copper/zink/lead mines that I understand has a great deal of resources. But how much can I expect a mine to produce per year, once it goes into production? How do I figure that out? The company has reported what stages they're at, what they've found at each site and so on, but I need to translate that into an annual cash flow for my analysis. Wat do?
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bump for interest
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is this that company that has been shilled here for the past few months? the name escapes me
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Name of the ore deposit?
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>>1827745
Probably a scam desu. If not, be aware that mines are incredibly high risk.
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>>1827745
If you do not know the grade/quantity of ore you will not be able to accurately value the mine's assets or potential production.
Secondly if the mine is not yet operational it will be too difficult to reliably estimate the startup costs. Multiple projects will only add complexity to this.
Cash flow will be even more difficult to estimate because it is contingent on the price of metals and the actual production rate the company is capable of.
Bascially you cannot do it. At least though you should look into, and attempt to understand what constitutes high quality ore for those metals and roughly how costly it is to extract in different situations.
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