Great mines are thinking alike on the UK Forums.
With most every day mines, like copper and nickel, you can estimate supply/demand ratio and the commodity price adjust accordingly. However, NdPr rare earths is soo alien-like and unpredictable to put an accurate figure on supply/demand how can anyone predict the commodity price and therefore stock price when PRE is producing? Yes, we know that the RE prices are set to increase, but how much? You need to hype into consideration.
At first, I was thinking £6/share for PRE was a 'mature' value, yet Lynas (closest comparison producer) market cap is of the equivalent £6/share. I don't know Lynas history or their stock dilution, yet at one point in 2011 their market cap was 9 times higher than the £6/share equivalent. By the time PRE is producing, the RE market will be in huge demand, and the resource is extra scarce and not quick to bring online (processed concentrated form). Lynas has a £6/share equivalent now, with less demand for NdPr. Plus we might have a U.K. based processing plant which means less reliance on Chinese processing. We are giving Europe/US an alternative source of NdPr which during a US trade war with China could mean hyped up NdPr commodity price.
What I'm getting at is PRE has currently be compared to Lynas as a forward model for sp maturity... yet in reality I believe the PRE could be hitting the market in a much high boom time for NdPr. The £6/share which was seems realistic to me, may in fact, be conservative with the hype effect being applied. Bit like the bio stocks for COVID - one went up 500% in a day a few months back.
Is £6/share (still open to depth and direction flagship mine with a U.K. based processing plant and a possible Coola sub-mine be too cheap? I thought I had an exit plan set, now I'm not so sure. Paul Atherley keeps springing more great news - this U.K processing plant feasibility study being the latest. Plus I recall a You-Tube video where Paul mentioned PE exploring other license clock options to further expand the companies asset sheet.
This stock will steal the limelight from GGP next year! Everyone I know has no idea what Rare Earths or NdPr is or how important they are in the future. NdPr is the new 'gold'
- Forums
- ASX - By Stock
- PM8
- Share price - General Discussion
Share price - General Discussion, page-1362
-
- There are more pages in this discussion • 1,898 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add PM8 (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
RCE
RECCE PHARMACEUTICALS LTD
James Graham, CEO
James Graham
CEO
Previous Video
Next Video
SPONSORED BY The Market Online