perspective

As we sit around the "line" pondering wealth creation ahead, lets muse a bit about critical mass and its implications here.

"Critical mass" definition here for me is the PRICE OF PRECIOUS METALS BASKET WHICH TRIGGERS VIABILIY OF PROJECT GO FOR SANTA'S TOY FACTORY exclusive of all the other bonuses like Vanadium and Titanium and what else here.

And lets leave all the other stuff apart from gold and platinum and palladium on ice for now, even tho current market cap is only 12 mill (of which a third is represented by cash).

IGV = 50 BILLION

Current 12 mill market cap = effectively 0.025% of IGV

At 0.1% of IGV, "value" = 50 mill = 1.60 per share

At 1% of IGV, "value" = 500 mill = 16 bucks per share

At 3% of IGV, value = 1500 mill = about 50 bucks per share

At 10% of IGV, value = 5 BILL = 160 bucks per share

Usually 10% of IGV is fair value for producer and 3% is fair value for emerging producer.

Now lets assume a big brother will come in for 70% to production say, so we can revise the main numbers accordingly thus

At 3% IGV / 30% free carry = about 16 bucks per share

At 10% IGV / 30% free carry = abt 50 bucks per share

By comparison, at its recent "peak", PDN was "valued" by market at around 40% of IGV, naturally expecting higher uranium prices ahead ...... but oops, ignoring the sovereign risk issues like Malawi change of government wanting bigger slice of action (stage 2 expansion beyond LH base) .... thats effectively what they are saying atm.

Thats OK too, cos as they would expect higher uranium prices, so too would I expect higher gold, platinum and palladium prices ahead, but lets KISS for now.

Considering I further am looking forward to some "critical mass" at Fifield NSW elluvial platinum play, cos even a small 20,000 ozs pa operation on its current 8 years worth at that rate resource (non-JORC), would IMO support a 50 mill market cap in the very least, one has to say PGM is looking a tad CHEAP at 12 mill market cap atm and SHOULD in a healthy precious metals market, move onto higher numbers, hopefully to around that Fifield base case OR the 0.1% of Santa's toy factory IGV or maybe both ......... for my 100 mill market cap target on ANY signs of reality here.

THATS why CRITICAL MASS is soooooo important here and we need to zero in on whats likely to take it there ........ what prices of GOLD, PLATINUM and PALLADIUM beyond Galahad base project numbers 470, 950 and 210 do we need to see before a major comes in for a slice and we start talking about 30% of 3% of IGV here !!!!

I BELIEVE IN SANTA and expect all our Xmases to come at once here once CRITICAL MASS is achieved ! Kinda like buying CMR at 20c in hope coupla years ago as metal prices started moving and all things started falling in place. Only diff is that PGM has only one-quarter the shares of CMR and about one-twentieth the shares of PDN so LETS HOPE THEY KEEP IT TIGHT so I can keep dreaming such big numbers haha !!!

Only a fairytale now I know, but praise Aphrodite and may she soon breathe some reality into our ICE KING haha !!!

(But where was the ice in those pix I posted ?)

All very personal opinuions bros ....... just love to have a decent punt on such huge potential as this when Im expecting a resources and precious metals hyperinflation wave ahead (give it a coupla years to get the asset deflation debt implosion outa the way first).

EXTREME LEVERAGE HEDGE for resources supercycle.

IMVBOOC