logging in or signing up kaiser pres Alien Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 186 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: April 28, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Exploration Speculation 101: Exploration Speculation 101 May 2006 Presented by John Kaiser www.KaiserBottomFish.com www.ExhibitorResearch.com What is mining all about?: What is mining all about? Cash Flow from a Depleting ResourceSlide3: What are the key inputs for mining cash flow? Revenue Inputs Tonnage Grade Commodity Price Production Rate Cost Inputs Operating Cost Taxes Capital Cost Annual Gross Revenue less Operating Costs = Operating Profit less Taxes = After Tax Cash Flow What is an orebody worth? Discounted Cash Flow Model: What is an orebody worth? Discounted Cash Flow Model Annual Cash Flow (1 + Discount Rate)n n = mine life (years of mining) ∑Examples of Recent Takeover Bids: Examples of Recent Takeover Bids Diamondfields – Voisey’s Bay - $4 - $160 Arequipa – Pierina - $0.50 - $30 Dia Met – Ekati - $0.60 - $60 Canico – Onca Puma - $1 - $21 Virginia Gold – Eleonore - $1 - $14 Western Silver – Penasquito - $0.50 - $33Slide9: How do we get to an orebody?Slide10: How do we get to an orebody?Slide11: How do we value a project before it reaches the production stage? The Probability LadderRethinking the target outcome at each exploration stage aka Ultimate Project Value (UPV): Rethinking the target outcome at each exploration stage aka Ultimate Project Value (UPV) $100 million $500 million $2 billionReviewing a Basic Gambling Concept : Reviewing a Basic Gambling Concept Fair Bet – 10:1 odds, pays 10:1 Poor Bet – 10:1 odds, pays 5:1 Good Bet – 5:1 odds, pays 10:1 The probability of an anticipated outcome should match the payout delivered when the outcome is achieved.Slide14: Applying basic gambling logic to exploration projects Find the fair speculative value corresponding to the target outcome and the exploration stageSlide15: How is the market pricing a project? Buffalo Gold’s Mt Kare Project Calculating Implied Project Value = Market Price X Fully Diluted Shares Net Project Interest = ( $1.05 x 57,300,000)/0.65 = $93,000,000Implied Values for Flagship Projects: Implied Values for Flagship ProjectsThank You: Thank You You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
kaiser pres Alien Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 186 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: April 28, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Exploration Speculation 101: Exploration Speculation 101 May 2006 Presented by John Kaiser www.KaiserBottomFish.com www.ExhibitorResearch.com What is mining all about?: What is mining all about? Cash Flow from a Depleting ResourceSlide3: What are the key inputs for mining cash flow? Revenue Inputs Tonnage Grade Commodity Price Production Rate Cost Inputs Operating Cost Taxes Capital Cost Annual Gross Revenue less Operating Costs = Operating Profit less Taxes = After Tax Cash Flow What is an orebody worth? Discounted Cash Flow Model: What is an orebody worth? Discounted Cash Flow Model Annual Cash Flow (1 + Discount Rate)n n = mine life (years of mining) ∑Examples of Recent Takeover Bids: Examples of Recent Takeover Bids Diamondfields – Voisey’s Bay - $4 - $160 Arequipa – Pierina - $0.50 - $30 Dia Met – Ekati - $0.60 - $60 Canico – Onca Puma - $1 - $21 Virginia Gold – Eleonore - $1 - $14 Western Silver – Penasquito - $0.50 - $33Slide9: How do we get to an orebody?Slide10: How do we get to an orebody?Slide11: How do we value a project before it reaches the production stage? The Probability LadderRethinking the target outcome at each exploration stage aka Ultimate Project Value (UPV): Rethinking the target outcome at each exploration stage aka Ultimate Project Value (UPV) $100 million $500 million $2 billionReviewing a Basic Gambling Concept : Reviewing a Basic Gambling Concept Fair Bet – 10:1 odds, pays 10:1 Poor Bet – 10:1 odds, pays 5:1 Good Bet – 5:1 odds, pays 10:1 The probability of an anticipated outcome should match the payout delivered when the outcome is achieved.Slide14: Applying basic gambling logic to exploration projects Find the fair speculative value corresponding to the target outcome and the exploration stageSlide15: How is the market pricing a project? Buffalo Gold’s Mt Kare Project Calculating Implied Project Value = Market Price X Fully Diluted Shares Net Project Interest = ( $1.05 x 57,300,000)/0.65 = $93,000,000Implied Values for Flagship Projects: Implied Values for Flagship ProjectsThank You: Thank You