Replies to post #49 on Camrova Resources Inc. (BAJFF)

[Danduedil67]

Carl,
Please keep in mind that they only own 70% of the mine
-Dan

[carl12341234]

I corrected the numbers to 70% ownership, thanks Dan.

I looked at BAJFF copper production numbers for 2013.
BAJFF is expecting 125 million pounds of copper in production. (for 2013)

Rather than calculating the cost of Zinc, Cobalt and adding them to the mix, let’s just take the sales price and reduce the extraction cost of copper from the mine. Study shows the mining cost would be $-.29 (that is minus 29 cents.

Assuming the world estimate for copper price will be correct for 2012, I used the same for 2013, estimated at $3.50 USD
We can now add to the world price, the 29 cents. $3.50 + .29 = $3.79 per pound of copper.

$3.79 X 125,000,000 pounds of copper (for 2013) = 473,750,000

With a PE of 5 X $473,750,,000. = $2368,750,000 USD divided by, 338,800,000 outstanding shares in BAJFF = $6.99 US per share.
X .70 (amount of mine owned by BAJFF) = $4.89

To consider the sale of Manganese, I looked at the present value of 1 Billion US Dollars on today’s market. I used only 50% of the value and paid off all existing debt. This would change the PE ratio from a multiple of 5, to a multiple of 10. ( the range is actually 10 to 16)
Doing the same calculation as above, the share price of BAJFF arrives at $9.78 USD

Carl

[11oldman]

Your production numbers are off. The copper production for year 1 thru 6 is 125m lbs per yr. not 84m

Oldman