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URL:  http://boards.fool.co.uk/it-will-be-interesting-to-see-if-they-raise-the-12511380.aspx

Subject:  Re: ORSU Metals Corp, CHEAPEST GOLD/COPPER CO ON Date:  20/03/2012  09:49
Author:  kimboy100 Number:  17483 of 17838
It will be interesting to see if they raise the cash.

B4T is of course correct as usual. I would say an NPV of 7.5 may be justified in USA or Australia. In a stan you would want at least 15 which would just about halve the capital value.

Then there is the assumed price. In the first one the assumed price of copper is $3.25/lb. IMV they should be taking the long term price which I suspect is closer to $2/lb for a long term project.

I notice for example that their sensitivity analysis shows that the NPV falls from $150m to $113m with a $0.25 fall in the assumed cu price.

I am not sure how they plan to raise the money but I wouldn't have thought the banks would be falling over themselves.

IMV not a viable project. I didn't bother to look at the second one.

I think once you have seen enough of these feasibility studies and highly attractive NPV calculations, and suffered the consequent losses, you become deeply cynical about them. The numbers are just manipulated to make the project seem attractive.

Lies, damned lies and NPV calculations IMV.
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