If you had a crystal ball, would you buy PDN at 1 cent in 2003? would you buy FMG at 2 cent in 2003? would you buy NKP at 100 cents in 2003? (NKP was listed on 22 September 2003 with issued price of 50 cents)
I went through historical announcements and data, come up with the following summary:
I hope these figures make sense for investors not speculators. If we bought it at 49.5c today, we were still 0.5c cheaper than issued price in 2003.
As draft BFS showed that cash cost is between $435 and $535 which is far below PGM basket price of $1,200. We won't see PGM price drop below $535.
If you don't mind, I would like talk BMN. BMN has a market cap of $100m. It has 152Mlbs, its BFS shows a operating cost of US$41/lb. But uranium price is currently trading US$42/lb. The Market values BMN at $100m. But NKP with 70Moz PGM at operating margin of US$700 is valued at ONLY $290m.
NKP Price at posting:
49.5¢ Sentiment: LT Buy Disclosure: Held