When it comes to valuing an explorer theres a few things I like...

When it comes to valuing an explorer theres a few things I like to consider first.

Yes the resource is good to mine, however, the only rush will be driven by NST who has a mine existing right below the tenement so unless that mine is close to having no gold left to mine out of pits, I would say shareholders will be waiting a while.

1. Cash in bank, as of 31 March we had $6m in the bank so there will likely be dilution of shares in the future via capital raise
2. Proximity to existing mines, the end goal of NXM is most likely to be bought out or JV'ed with NST given how close the tenement is already to existing infrastructure. They will likely establish the resource sizes which NST will ultimately buy (note that there is already a 10% JV with NXM for pinnacles so a form of vested interest has already taken place)
3. Resource size - NXM has inferred 480kt to 800kt (from memory) so if we took a middle band that would be circa 600kt of gold at a selling price of lets say $2k (gold expected to drop as inflation eases) thats $1.2b of revenue, NST generally runs a 10% company wide margin so thats $120m (give or take) of profit to NST. For NST to get a payback on acquiring the company at say $60m it would need to generate 2x that investment. I'd say they will buy NST out between $40m-$70m (potential resource upside) else it isn't really worth their time
4. The resource assumption is based on open pit mining which is relatively economical, for a resource of this size it is unlikely that NST will really dig deeper than needed
5. Time - NST is in no real urgency to buy another tenement given it has a 20moz resource to manage already, they are likely to let NXM keep exploring, establishing and understanding the resource before considering an acquisition. There is still more drilling to do which NST can forgo the cost of drilling by waiting and then buying (even if it may end up being at a premium in the long run if resource upside is found)
6. Other projects - NXM has other projects in its portfolio but are really in their early stages and won't add much value to the stock