Angloplat is the worlds largest producer it has a market cap of $31 Billion for an annual production of 2.5 m ozs pa. Our NKP will produce 1m ozs pa which is 40 % of Angloplats. Keeping it simple and suggesting similar profit margins, we should end up by 2016 with a 40% maket Cap at $12.5 Billion which is 36 times the market cap of today.
Lonmin has a $7 billion market Cap and produces around 400K ozs pa ( rising to 600k pa over the next year or two). Again, assuming similar profit margins, this gives our NKP amarket cap of twice that of Lonmin once we are producing 1m ozs pa, i.e $14 Billion which is 40 times our current market cap.
Splitting the difference, we shoud be looking at a market cap of 38 times that of today. 38 times today's market cap divided by shares currently on issue seems quite interesting at around $25 per share.
Apologies if the maths is incorrect, you are welcome to rework the numbers and let me know if I have stuffed up.
Cheers
NKP Price at posting:
65.5¢ Sentiment: Buy Disclosure: Held
