NKWE Platinum current mineral resource of 68.5 Moz 3PGE+Au (JORC Compliant), 14.2 Moz measured. Independent valuer Grant Thornton valued the IPO 15% stake of Tubatse at A$44.1M to A$63.57M in November 2008. NKWE ended up with an option agreement to pay $60m upon completion of milestones that would ultimately give us 100% ownership of Tubatse.
15% of Tubatse worth $60m, gosh, I would love to see this one day reflected in the share price. The independent valuer gave the prospective rights of Tubatse alone a value of $400m base on the 15% valuation. Valuation wise, no matter how you look at it in-situ resource comparison with peers or adding Garatau where Edison gave a valuation around $500m. We are freaking undervalued. Funding needed, JV needed, for without funding value will not be realised. In my opinion, we are at a point of limited downside in contrast with booster rockets blasting back into value.
We have all observe Xstrata's comments last quarter regarding a possible JV, Brokers and HC posters in direct contact with PL have alerted us that JV discussions are alive, well and active with Anglo Platinum and Xstrata. All that is missing is, the deal. This is what lawyers are great for in negotiations, they have taken us through the legal battle to win back our rights, having done so, I would imagine them being capable of winning us a deal.
The two largest PGM deposit of Tubatse being 'Hoepakrantz' is situated opposite to Anglo's Modikwa mine, the second being 'Eerste Geluk' is so close to Steelport, near Xstrata's Lion smelters. Synergies is there. The seeds to grow to feed the two CEO's hungry PGM ambitions is waiting for them. With strong PGM forecast and a platinum price sitting pretty at $1831 per ounce....
I hope Macleod and Bailow is right.
I hope all my time and research dedicated to this will pay off.
I hope that day will come soon.
o
NKP Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
