Good to see the recent SP action with NMT but its only the start of what should be a major 24 - 36 months in my opinion.
The key take away for me is that each individual project on the slate has a "risked" NPV of several times the current MC. Given that the key risk for most "project developers" is finance risk the fact that NMT has about $75M+ in the bank means that risk is significantly mitigated. If you re-run the NPV calcs with a lower discount rate (i.e. risk number) the multiples look even better.
Even with the recently increased MC NMT still looks very cheap (the EV is negligible for a company with runs on the board) and is therefore a High Conviction stock for me. As the projects are further de-risked the EV "should" increase to reflect the future value of cash flows but you never know what the market will do - IMHO the EV is already well under the true value given the risk and proximity to commercialisation.
One thing to remember is that if, for some reason, things go pear-shaped or get bogged down in any of the projects the Board could decide to focus all their attention and funds on a single project - say battery recycling - and organically finance the whole thing. This would still justify a MC several multiples of where we sit today.
I know some holders are keen on dividends but given the project slate I will not be disappointed if the dividend is suspended for a couple of years and that cash is best used to accelerate development or hold a bigger share in near-term projects.
As for being a Nickle play - I don't think NMT is a nickle play. I would not be surprised if the Nickle assets get spun out at some stage as the market seems to find the concept of being a miner AND a project/tech developer quite difficult to swallow but diversity does have its advantages. Same applies to the Vanadium/Titanium project.
Anyway, take everything I say with a grain of salt. All just my opinion and good luck to all holders - especially the long suffering variety like me.
Cheers,
SC
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