Some people think Nkwe Platinum are asking too much of a joint...

Some people think Nkwe Platinum are asking too much of a joint venture partner to fund 100% of the capex for 50% of the resource but in reality its more like this.

Lets say the joint venture gets half the 68 million ounce resource and pays US$14.70 per ounce with a guarantee of Nkwe Platinum paying half the capex of a 1 billion dollar plant.

Now 34 million ounces @ US$14.70 per ounce equals US$500 million. Platinum explorers are generally (well were) worth about $10 per ounce depending how advanced they are and producers about $40 per ounce.

This equates to the joint venture producing at a discount @ $29.40 vs $40 per ounce and we get a premium @ $14.70 vs $10 per ounce pre production, seems fair to me.