Thoughts on Minera Andes valuation (MAI)


In the most recent corporate presentation, MAI Presentation last page, Rob outlined his thoughts on the value of Minera Andes as such:

(Based on Fully Diluted 288 million shares)

San Jose (Ag, Au) $3.6 billion X .5 X .49 $880 Million $3.06/share
Los Azules (Cu) 12.5 billion lbs inferred at $.02/lb $250 Million $0.87/share
Exploration properties $50 Million $0.17/share
$4.10/share

BUT I believe the copper is worth more like $.10/lb given recent copper takeovers, one at $.13/lb, Antares Minerals. Factoring that into the above calc’s would give a valuation of $7.57/share. Needless to say it would seems the shares could easily be worth closer to $5-6. I also wonder if Rob will keep the copper, he is, after all, primarily a silver guy these days, with some gold. I wonder if he would sell the copper if he could get $.10/lb or $1,250,000,000 valuation and role this money back into silver and gold exploration. If MAI develops the copper it would seem they would have to partner with someone for the estimated $2.3 billion mine costs. Again, just my 2 cents.

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