Thank you :)It should be trading at $0.32 now just simply based...

First 20 Last

Share
Profile

Follow
Leo_m1958

674 Posts.

194

07/12/21

18:28

Post #: 58138238
Share

Originally posted by Mariemac: ↑

It’s incredible how asleep the market is to PAN’s valuation when digesting the calculations from the report and using its peers for comparison. PAN is simply undervalued at current levels by about 50% using July’s 2021 spot price and even more using today’s spot price.

Pre-Tax NPV using spot price as at July 2021 represents $644 million from pre-tax mine cash flow of $1,071 billion over the life of the mine which is noted as 12 years.

Using the NPV (Dated July 2021) to value the business, the market capitalisation should represent $644 million or about $0.32 per share.

If we use today’s spot price (about 20k per tonne) to value the business, the share price would even be higher.

As I understand based on the calculators, for every 20% move up in the Nickel price using (July’s spot), this will add about $324 million to the NPV over the said mine life or closer to $1 billion NPV or about $0.50 per share. (This would equal spot at $23,900 per tonne).

The above valuations do not factor any premiums that sit on top of the NPV. I.e WSA, IGO are valued way higher than their current NPV’s.

The market could simply be waiting for confirmation of first shipment (revenue) before they re-rate the business - First shipment revenue estimated at $18 to $20 million.

No brainer for me, I have accumulated another 1.5 million shares yesterday at $0.21

Marie

Expand

Thank you

It should be trading at $0.32 now just simply based on the proposed NPV - Not even targets.

$0.50 based on Nu at $23,900

It’s madness that we are currently trading at $0.21 a week out from first shipment - I put this down to wait and see if first shipment is sealed because nothing else makes any sense.

PAN Price at posting: 21.0¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

ENV

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

NAM

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

VUL

Vulcan appoints investment bank and M&A veteran to board

ASN

Utah authorities sign off on Anson's lithium extraction plans at Green River

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

AZY

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

MM8

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

MLS

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

MKG

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

There are more pages in this discussion • 70 more messages in this thread...

First 20 Last

Add PAN (ASX) to my watchlist

Thank you :)It should be trading at $0.32 now just simply based...

Top Stories

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Vulcan appoints investment bank and M&A veteran to board

Utah authorities sign off on Anson's lithium extraction plans at Green River

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Featured News