Crunch the numbers before you get too excited. Yes, the valuation should be more than the current SP but I've seen other posts where people are referring to in-situ metal numbers. Irrelevant.
Latest metal pricing & A$:$US gives about A$130/t in-situ. Lets use the CHN assumptions: A$151/t for the global estimate of 0.70 g/t Pd, 0.15 g/t Pt, 0.16% Ni, 0.09% Cu, 0.015% Co & 0.03 g/t Au. Using the current weighted average recoveries from the release of 60% for Pd/Pt 45% for Ni/Co, 85% for Cu and 70% for Au brings the recovered metal value to ~$84/t. After WA royalty, marketing and smelting charges (10% overall?) => $74/t. Mining, crushing, treating and owners charges to be determined but likely to be north of $40/t (??) given the requirement to grind it down to dust with the non-straightforward metallurgy even with the estimated strip ratio given out yesterday. CAPEX for a 20 Mt/yr operation - some very large 9 digit to $1B cost? Feed all that into an NPV calculation for a range of sensitivities and divide by shares on issue remembering that there is dilution to come. You don't get $20 valuations. If you use current (rather than assumed / forecast prices) it's not nearly so interesting.
The good news is that with the low grade, the ongoing work to improve recoveries could have a big impact on the NPV. Improving the global Pt/Pd & Ni/Co recoveries from from 60% and 45% to 65% and 50% respectively (say) could add multiple $/share. So the met update is the next big one for me barring something truly exciting happening on the exploration front.
GLTAH
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