pdy a comparative valuation

Just to gauge what a 500Mt indicated resource is worth, it might be worth having a look at FMS, which has a similar sized project, in a similar location. Although they are further along the path its something similar to compare it with

These guys have a market Cap of ~275 M with $47M in the Bank

With one main project

Inferred 475 Mt @ 55% Fe
Indicated 272 MT @ 55% Fe

Total of 747Mt @ 55% Fe

So do some maths,

Value of project = 200M (275M less cash of 47M and value of small projects, goodwill etc)

So 200M/ 747MT = $260,000 per Mt in ground/indicated value for FMS

However as PDYs Fe is 30-40% their in ground value would be less. So applying a heavy discount of 50% assume PDYs value is $130,000 per Mt.

So a 500Mt resource for PDY would be worth circa 45.5M($65M x 70%)

So with current shares on issue + Options of ~2.5B the current value would be 1.8 Cents.

So currently @ 2.8 to 3.1 Cents PDY would be overvalued on just the one resource.

So I wouldnt get too excited, on just the 500Mt. what you want is the blue sky.

So should you buy it now?

Well if you think that the 500MT maiden resource is in the bag. You'll pay a small premium to get a potential 7x to 10x return should they prove up to 3.5 5 BTs of Fe.

But that will be some time and a couple of Capital rasings away.