Resource Valuation, page-9

Hi MC,

I'm not doubting that there are many other considerations other than the total value of the resource in valuing a mining company. Besides the cost of extraction and refinement, in our case, geopolitical considerations are a major factor. 

Did the recent article you read stating $1100/oz refer to Nkwe?

I read a recent article that stated this figure as an average of all S.A. Platinum mines. Several years ago I read the estimated sustainment cost of capex and production averaged over mine length from  Nkwe's Merenski reef was between US$800-US$850 per oz. The current exchange rate should make that even lower now.

If you look at a graph of platinum prices over time there is a pattern of increasing range. Most analysts agree we are currently near the bottom of that trading range. The last high of the trading cycle was around $1850/oz in 2011.