Continuing with the simple math theme, here’s a look at the value of Eagle’s Nest from a slightly different angle.
Based on NOT’s Feasibility study for Eagle’s Nest, and LME prices on Sept 1, 2021:
Average Annual Mining of 1.095M tonnes containing:
|
Metal
|
Annual amount
|
LME price
|
Annual Value
|
|
Platinum
|
23400 oz
|
$954/oz
|
$22.3M
|
|
Palladium
|
91100 oz
|
$2138/oz
|
$195M
|
|
Gold
|
4900 oz
|
$1793/oz
|
$8.79M
|
|
Copper
|
8700 tonnes
|
$9640/tonne
|
$83.9M
|
|
Nickel
|
15,500 tonnes
|
$20426/tonne
|
$317M
|
Total Annual Revenue from Eagle’s Nest: US$626M
Annual CapEx: US$160M
Annual Operating Expenses (at $97/tonne): US$106M
Annual Profit (earnings): US$360M
Annual Earnings per share (500M shares): US$0.72 or $0.91CAD
Profit Margin: 57.5%
That means the current bids are equivalent to a P/E of less than 1 for Eagle’s Nest alone and don’t include Blue Jay, any of the chromite in Blackbird, Black Thor or Bid Daddy, etc, any inferred amounts, or any of the exploration upside.
A sampling of potential buyers current P/E: BHP (12.25), Fortescue (3.25), Glencore (29), Teck (103).
BHP and Wyloo, for your next bid, choose your P/E carefully and remember, the ROF isn’t just one mine. What you’re bidding on is the next great Canadian Mining District - Noront owns at least 11 distinct deposits in the ROF. So pick a number, any number, between 3.25 and 103. You might want to start with something reasonable, like a P/E of 7.65 - that would get things cooking nicely at around $7/share.
Hobbit
