We think a would-be acquirer is in a position to drive a hard bargain for McEwen Mining’s Los Azules porphyry copper project in San Juan, Argentina. In order to calculate our estimated offer price, we’ve utilized AuEq ozs. and the following current spot prices: $1,332/oz. Au, $14.70/oz. Ag and $2.66/lb. Cu. Our Total Acquisition Cost at 10% (TAC10) assumes an AISC of ~$1,240/oz Au.
|Total Estimated Payable Resources (AuEq)||25,986,778 ozs.|
|Treatment and Refining Charges||($2,684,000,000)|
|Net Pre-Tax Cash Flow||$11,663,388,296|
|Net After-Tax Cash Flow||$6,055,388,296|
|Los Azules Inc.|
|Theoretical Market Cap||$3,461,438,830|
|Cost to Acquire||$133/oz.|
|Cost to Build||$91/oz.|
|Total Acquisition Cost||$1,240/oz.|
|TAC10 (Total Acquisition Cost at 10%)||$3,221,703,827|
Notes: All Values in U.S. Dollars
The Total Acquisition Cost for Los Azules factors in all TCs & RCs, Royalties, Taxes, and Closure Costs, in addition to LoM OpEx.