posted on
Dec 13, 2013 12:23AM
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)
Message: Re: $3 Nickel
Nothing wrong with the sale pitch, except that perhaps you are offering too much for free, ;-).
BUT I do have a contention with your 5% of the 66 billion. Where did you come up with the 5%?
As I know it 5% applies to explorers with a demonstrated find. NOT was there some 4 years ago. It is no mistake that the company now says that they are in development stage.
Compilation of how to value a metal mine by Ed:
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Metal Mine Valuation ( just my compilation, 2012 version )
Market determines stock price, we calculate value per share.
Estimate value of assets. (Metal in-ground, infrastructures, cash etc.)
Divide by number of shares outstanding. Result is value per share.
Determine stage of company: Land hold, Discovery, exploration, feasability, development or production.
These determine average 'ball park' percentages of valuation usable as real value.
Discovery (Hype?): 1-5%
Exploration (NI 43-101): 5%
Feasability: 10%
Development: 10-20%
Production: 40%
Purchase price: 60-90% of worth.
Gross worth: 100%
Discovery is finding of said metal whose quantity and quality is yet unknown.
Exploration is drilling and documented reporting of findings.
Feasability is a study of economy of future mine.
Development is construction of mine with associated costs arranged.
Economic Production is Gross Worth minus operating cost (environmental), royalties & taxes (bribery & politics), resulting in profits.
Purchase price is Gross minus expected profit (incentive to buy).
>
If you would accept the above than we are at least at 10% and I will say that 20% is more applicable.
Crazydick's 20$ is quite valid,imho.
Testimony of how under valued we are. Cheers to all. Ed G.
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