valuation, page-44

Hi DD

That is quite a good post, I enjoyed reading it... You referred to one of your earlier posts, which I went back and read (noting you have only posted 13 times since being a member on HC, all on NKP).

Quote from this post as follows - September 2012:

"I did some numbers a few months ago and they are obviously based on some assumptions, unknowns, and guesstimates... also not taking into account acerage that nkwe still have but may need to trade off to get the show actually on the road..... I also believe that the more drilling that eventually gets done the bigger the actual resource will be proven across all of the properties...anyway I ran a few exercises-used a Pt spot price of $1550- 1650, Pd $500-600, Rh $2800-$3000
Shares on issue at the time 623 million.
At the time the global comp EV to Resource once was in the $$48-$52 range. ( nkwes was a small percentage of this at the time and even smaller now )

Based on my research I valued
Hoeperkrantz at between $550-$600 million
De-Kom $30-40 million
Garatau $900-1000 million
Eerste Geluk $420-460 million
Nooitverwacht $150-$190 million
This gives nkp a total NAV value in excess of $2 billion and the shares a figure of somewhere in the +$3 range."


In looking at the above comments, with platinum price similar but a little lower, higher issued capital, and with possible disputes over farms, let's apply a blanket and aggressive discount of say 2/3rds or 67%... That still gives me a value of $1 or so that I believe Zijin would have to pay us to buy us out... Let's discount that possible TO price by 50%.... That's still 50c...

Questions....

1) what are your more scientific calculations/views on current value?

2) why would Genorah accept 12c in light of your response to question 1?

Thanks very much in advance