Hi MC,
I'm not doubting that there are many other considerations other than the total value of the resource in valuing a mining company. Besides the cost of extraction and refinement, in our case, geopolitical considerations are a major factor.
Did the recent article you read stating $1100/oz refer to Nkwe?
I read a recent article that stated this figure as an average of all S.A. Platinum mines. Several years ago I read the estimated sustainment cost of capex and production averaged over mine length from Nkwe's Merenski reef was between US$800-US$850 per oz. The current exchange rate should make that even lower now.
If you look at a graph of platinum prices over time there is a pattern of increasing range. Most analysts agree we are currently near the bottom of that trading range. The last high of the trading cycle was around $1850/oz in 2011.
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