 Good day, fellow investors! Yesterday we discussed the risk reward for copper as a metal and a long-term bull thesis. And today we're going to discuss a very stable, disciplined quality business that is London mining, which has about 66% exposure to the metal copper. So if you want exposure, London should go on to your watchlist as it is on my watchlist. So we'll give a company overview some of parts value as there are four mines that have to be valued, the cash per share and the outlook for the company. You might be familiar with London because it started the Nefsson takeover saga. They offered about 3.6 to buy Nefsson. The Chinese offered much more, so they didn't want to pay too much for Nefsson. My 15% return target price for Nefsson was 3.15, London offered 3.67, whatever. So London's discipline target return is 12% from the available things plus eventual future potential from exploring Timoklower zone, exploration, Eritrea that they want to get for free. So very smart, very disciplined. I like the way this management is leading the company and what they have done in the past. So you might be familiar with London from there. Let's see what London is about. Before that despite the discipline, London is and as with any miner will be always extremely volatile. You can see the stock price was below 3 in 2016, above 5 in 2014, then above 7 in 2017 only to drop a gain down to below 5 currently. You can trade it on Toronto, NASDAQ and over-the-counter in the States, number of shares 733 million. The company for operations Eagle, Nickel Copper in the US, Kangalaria in Chile, Finland, Freeport Cobalt, not that significant for now, Zinc Gruvan, the IKEA mine in Sweden and Neves Corvo in Portugal. As I said 66% Copper, 16% Zinc, that's another interesting metal, 8% Nickel and 7% Gold and Silver. So let's go on to some of parts value. We have the mines there, let's see. This is the Kangalaria Copper production profile. I have used the Copper production, I have looked at the average mining costs from the technical report, planted the tax rate on that in order to see okay what are the cash flows also minus the capital expenditures expected and currently incurred, what are the cash flows that will be free for landing from this mine. Here we have the costs after that I have estimated based on the production let's say sustainable cash flows but they're probably expand the mine so that's another thing to take into account. Average costs 1.39 average life of mine, I have used 1.5 just to be more conservative but then I have also changed it to what are their expectations in the shorter. So this is my model, back of an Epkin model, a little bit of taxes included and I got to okay the value 542 million at a Copper price of 2.5 dollars per pound plus a 15% discount rate to the future free cash flows. The Eagle Mine only five years left but is very highly profitable because their costs are 1.1 per pound of nickel while the price is around 9 dollars so extremely profitable low remaining capex as it is almost ending the life of mine. My value comes in at 668 million at current metal prices current nickel prices so extremely positive. Neves Corvo Portugal extremely low costs at 0.29 per pound of zinc when per pound of zinc when including other metals as a bike product. So again another low cost putting in all the data in a model the value comes out at 610 million at zinc at 1 however zinc is another potential exploding metal with copper as supply is getting tight. Zinc groove 1 it looks like an Ikea table or something to me the name that doesn't matter smaller mine value I have come out in my model to 230 million something that I always like to get for free but London is extremely good in exploration and increasing the life of mine. Look at what they did in Candelaria you can barely see the dotted line is what was the expected production when they bought it and now you can see what is the current production and what is the expected production in the future. So they really increased the production at the company and they increased the life's mine for almost seven eight years so this is London very efficient if they would have acquired Neveson and Timok they would have done extremely well to there I don't know whether the Chinese will be able to do the same as Neveson as London management is doing around their mines that they are owning however they're probably investing something new if they get the chance. Also they are exploring all around their existing mines to take advantage of the infrastructure that is already there in order to get a high return on the investment. So to sum up Candelaria 542 Neveson 610 Zinc groove 1 230 Eagle 668 total value of mines 2 billion 1.5 billion on cash and freely available as they plan to acquire Neveson they also say they might pay out some extra dividends so that might be a bonus however I'm not going to account for all the cash available because I'm going to discount it by 20% if they pay you dividend I have to pay taxes on that and that's always you never know what they are going to do with that so we have a value of around 3.2 billion for the company so the 2 billion for the mines is 2.79 per share at a 15% discount rate plus 1.64 the cash the discounted cash the total value I get is 4.46 current price is around 5 so still not yet a buy for me however if this is a 2.5 copper over the long term if copper prices are average 3 3.5 then it's a completely different story from London however if copper prices go to 2 then all the analysts will take 2 as a long term price average no matter the cost no matter what because that's how analysts work and that's why the stock price as you have seen it in 2016 there will be debt concerns refinancing can they finance this can they do that they will probably as London is they will buy another mine at those low prices they will try to buy it cheap as they have tried to buy Timok when Neveson did but they didn't want to overpay risk reward again very conservative very disciplined so expect a lot of volatility the stock price was 8 now it's 5 can it go to 3 yes can it grow to 10 also yes so that's just an analysis for now of London see how it fits your portfolio I am going to compare this with many other copper gold miners zinc miners to see which one is best for my portfolio exposure and what's my investment strategy because with the volatility you have to have an investment strategy which I have elaborated on my stock market research platform so please check that and see whether that fits your portfolio thank you for watching looking forward to your comments please subscribe as there will be many many more videos from a value in investing conservative low risk high reward approach on investing where we analyze countries everything that is a relatively cheap at the moment and then cover that sector and see when it's the best time to invest see ya in the next video