upside Umop,Quote:
upside umop-The reason KUPE seems valued so low, is in fact as you say digger the stretched out nature of the revenues. When you discount at around 13% 20 years ahead, the figure doesnt look flash. ie $100 million in revenue discounted back to now is worth around $9 million ( [100]/[1.13^20] =...and thats revenue. If it was profit, say $40 mill, we would be looking at less than $3.5 million NPV!
You have missed one critical thing...
Kupe is one hundred million every year for 20 years plus...
not just the initial 100million discounted to a present value...
Look at an annuity table... Calculate each years revenues discounted back to the current period...
maybe Add in Momoho.....
Higher Prices for sure....
100million now not enough....
low down, big up investment here....
Current PRC target production rate has Pike worth well over $2 with dividends...
Pike FAR more risky than Kupe.....
:cool:
.^sc