HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: Valuation

Re: Valuation

in response to by
posted on Aug 27, 2008 07:56PM

That is too big a question when I am just about off to bed...But thoughts right now are turning to Nickel producers shutting productions of lower grade mines do to low prices of ore and high prices cost of extraction. Since our grade is so high, the cost of extraction will be relatively low and hence the profit margin should be good to great in any market. The question of Intrastructure, assuming nothing else is found would eat up that margin or most of it so unless more is found, I believe that even with our high grade, we or who ever mined it would not yield a great profit. Now if infrastructure is all there because we also happen to own 30-45B worth of Chromium and all you have to do is dig it up and have it smelted for the high grade and concentrated and smelted for the low grade, the margins would be very good and so could easily command 20%, possibly up to 40%. Now Eagle 2 so far is adding up to have decent tonnage but lower grade at greater depth. The margins here would be much lower. You have to move much more earth to find less nickel. But again, the moderate tonnage makes it worth while and we could get 10 to 20% of GMV-Again assuming infrastructure there because of Chromium...Now, add AT12, AT1, C1 with good hits and you can raise the % towards the higher of the 2 numbers...When you look at it this way, Eagle 1 alone at 20% of GMV is more than our MC...And that is why I and so many KNOW we are so undervalued.

Good night all...Next time Millsy, ask earlier in the day, please.

Glorieux

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