re: npv of $0.86/share but ni trading 26% higher Was wondering how you arrived at the value of 86 cents per share from Sally Malay? I got a figure back of envelope figures in a range of 80 cents to $1.20 but can't get it more accurate than that until costs are known fully.
Do agree that the previous valuation was conservative and done before the price of the hedging was announced.
It is very interesting that the Sally Malay project alone values SMY at 86c per share based on a Ni price of A$15665.
HOWEVER, the 25% of production that is hedged in 2004 will receive A$15801 and the 75% of production unhedged in 2004 will, based on current cash prices, receive A$19717.
As a rough guide, these prices must revalue SMY around $1 WITHOUT taking into account any resource upside from Copernicus prospect.
SMY is current trading at 75c up 7 per cent today...any price in the 70s or 80s is looking very cheap...quite possibly in the 90s as well !!!!
SMY Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
