value for money

Value per ounce is here

Summary
Using current JORC indicated and inferred resources contained in SK and MM projects PGM is trading on Gold equivalent EV/ounce =US$3.4/ounce………..

Total Au equivalent resources = 10.1Moz.

Go figure

So here are the figures PGM used for the recent SK study assumptions:

Au US$650/oz
Pt US$1350/oz
Pd US$400/oz
Rh US$6000/oz (not from SK study)

Munni Munni

JORC inferred and indicated resource
23.6Mt @ 2.9g/t PGE's containing:
0.8Moz Pt
1.1Moz Pd
76koz Rh

Skaergaard inferred resource:

Au Zone:
106.6 @1.7g/t Au, 0.6g/t Pd containing:
5.78 Moz Au
2.03 Moz Pd

Total in ground resources (not adjusting for recovery)
5.78 Moz Au
0.8 Moz Pt
3.13 Moz Pd
76koz Rh

Total in ground value
Au = 5.78Moz * $650/oz = $3757M=57% of total
Pt = 0.8Moz* 1350 = $1080M= 17%
Pd = 3.13 * 400 = $1252M= 19%
0.076 * 6000 = $456M = 7%
= $6545M= 100%

I don’t like using gold equivalent figures so the percentage of Au, Pd, Pt and Rh is included for clarity.

Therefore
Au equivalent for PGM is 10.1Moz for both SK and MM

Current PGM market cap
37.252 M shares *A$0.98*0.95=US$34.7M

EV/ ounce
= US$3.4/ounce………………

I would expect PGM to trade at a discount to peers given modest grades, medium time to production and cash requirements however $3.4/ounce IMO is peanuts. Most explorers trade between $10-50/ounce depending on the deposit metrics and locations ect. PGM should close the gap as further drilling is progressed on SK, feasibility studies on MM updated and some investor appreciation of PGM’s assets during a PGE/Gold bull market eventuates.

DYOR