aud 3.94 valuation, page-2

I think a $3.94 valuation is very aggressive

The 12.4Moz with a short term upside of 25Moz is very impressive though. A 100Moz+ long term conceptual model will be amazing but will take at least another 2 years to prove up. Good thing is that there is 10 rigs i=on site drilling.

I think valuing on reserves is misleading
I was looking at their production targets and possible earnings.

They are trying to get a production rate of 1Moz per annum from the 2 farms eventually. This is just a conceptual target but with 25Moz (and the grade is pretty decent as well) this looks achievable.

You will have a CAPEX and OPEX. Platinum prices did reach a high of $US2000 per ounce and many are predicting these prices will go higher. I would rather be more cautious and use $1500 per ounce. Remember that production will be at least 5 years away too.

Say the average OPEX and CAPEX expenditure per ounce produced comes to
$750 then your margin is still $750. On 1 million ounce a year then
your profits is $750million per year

I just use a simple PE of 10 which gives $7.5 billion

IGC has 15% which equals $1.125 billion
If I take 20% (a very conservative approach to factor the time and risk) of this then its $225 million

IGC has I think 185 million fully diluted. 60 million odd are unlisted
options I think

This would be a value of $1.21 fair value. I am thinking $2 for a 12
month price target

I think $3.94 is abit optimistic with the early stages however I do agree that IGC should be $1+. I think as IGC progresses the $3.94 valuation is not out of the question. I just think its abit optimistic to say that now.

I see NKP as being a juicy play as well. They have 74% of the field. I have NKP as $4.40. This actually represents a 500% difference for NKP to IGC's 200% upside on current share price. I say a $6 price target for NKP.

Either way this is huge news for both IGC and NKP

Interesting that Tony Sage said "Negotiations regarding a corporate transaction". If it is indeed a takeover as so many past HC posts are saying then the price must be $1.57+ (30% premium) or otherwise its better for shareholders to hold long term.

This is just my thoughts. Please do your own research before investing.