igc become a shell company, page-17

Ray , I have done a fair bit of research into platinum and platinum companies .
The resources in the ground are often used as a valuation .The offer that Nkwe has put forward is very generous based on their resources in the ground at roughly $20 oz.
Compare Nkwe's resources in the ground at around $3 oz ,and you can see that compared to Nkwe this valuation is extremely generous .
The $20 oz figure also compares very well with many producers which generally command a higher in ground value than non producers .
If NKP were to be valued on this criteria they would be around $1.50 .The reason the deal has not been concluded is that the share price of Nkwe is so ridiculously underpriced that it is not worth diluting their market cap to raise $60m at present prices ,and Sage knows it .So he had no option but to modify the deal .
Nkwe are expecting a upgrade to resources from their major drilling campaign , reportedly using 15 drill rigs .
This should be enough to raise the share price of Nkwe to an acceptable level for the first $20m .(not ideal ,but ok to seal the deal with Sage to defer the rest .)
By the time the second tranche is due ,the BFS will be finnished ,and Xstrata taking up the option for 50% of Nkwe .The share price will be north of $1.50 by then and dilution of the other $40 m will be acceptable on a resource valuation .
The offer from NKP to IGC for their 15% is very generous ,especially in this market ,but the problem has been that the market has been less than generous to NKP's share price to facilitate the completion of the deal .
I dont have any affilliation with Sage or any one else associated with these companies .I am an investor in NKP ,owing to the huge discrepancy in the markets valuation in comparison to all other platinum companies .
My conclusion is that Nkwe have offerd a fair to generous price for these assets ,and is at the same time massively underpriced themselves .
IGC looks like a holding company for one asset ,and the core company in sages stable is CFE .
The markets just dont appreciate holding companies ,and tend to discount them substantially .They may also be liable to pay tax on the sale of assets ,that many dont take into consideration .
I hope that clears up my association with these companies .
I hold CFE and NKP for these reasons .
I dont hold IGC ,although it looks cheap enough to me at these prices .Nkwe is certainly the pick with regards to potential upside .