Originally posted by lockstock79
I agree Loop, that is how I interpreted our announcements as well. I am surprised the first divodend payment didn't trigger a lot more interest in our company. I understand the weakness in the wider Lithium market is affecting the SP, however we are sitting pretty at the moment IMO. While I am personally not a fan of the decision to split up the company, I am very much looking forward to hearing the metrics of the DSO plan for the titanium/Vanadium. I actually bought this company for that project (and the other projects we have in the works, battery revyvling etc) with MM dividends as the financier, rather than buying in for the Lithium itself.$1.3 billion Aus for first 80m deep and we own 100% of it.
Hi Lockstock, Titianium is the prize here in my opinion not lithium I agree your comments is the financier. I don’t think the market can see this as lithium such a hot topic with EV demand soaring and MM at full tilt about to turn on the 4% plant so as of early next year production is some 450k tonnes at 6%. However we only get 13.8% of the income after cost perhaps $26 or $30m per year ish. The in ground value of the titanium deposit is $130 billion Aus and NMT own 100% of it.
Current share price appears to be based upon the income from MM alone and even that is undervalued but very soon in for a wake up call.
I’m all in favour of the share split which should recognise the enormous value in titanium/vanadium/iron deposits and the timing couldn’t be better, the bulk sampling results should allow offtake partners to bid for the DSO creating and recognising the value in this deposit and making the new co cash positive within a short space of time after the split.
NMT will need a JV partner to help fund a processing plant $525 m which pays back in under 4 yrs so should create around $130m per year after cost.
The DSO operation will give income until that happens, the new drill results from 80m down to 260m may double the recourse as 80m drill results open at end, this may not substantially increase the value but rather increase the mine life pushing it out to well over thirty years, value probably calculated on 10 or 15 yr income is my thinking here.
The next six months or so should have drill results, bulk sample results, DSO agreement and share split during which time NMT should receive some $12m income form MM, the current share price sucks but I’m a very patient guy, Loop.
