So my short term valuation is 75 cents at nickel price around 40,000, 5000 tonnes production and P/E 5 with margin 40% after tax (which is VERY good).
Once theyre producing the 5000tonnes with no probs for a bit and management forecasts higher production for the following yr with certainty, the market will price it according to 8500 tonnes production.
I came to the conclusion that 8500 tonnes with a nickel price of 30,000 and net profit margin after tax of between 35%-40% would give a valuation between 85 and 95 cents
So $1 will be the valuation once 5000 is produced and no hitches and management tells market with certainty that following yr production is 8500
this will take a little time
long term its definately a great investment!
short-term its priced according to its short-term fundamentals with upside from higher nickel price mostly.
***im just telling people not to get their hopes up and get impatient.
If PON goes up, itll go up and surpass my long term forecast based on 8500 production and 30,000 price
one yr from now itll be around $1 provided nickel price is similar to todays and IF AND ONLY IF theyll be set to increase production to 8500 tonnes in the near term from that point.
If production is STILL 5000 tonnes with no certainty of increasing in the near term 1 year from now, then 75-85 cents provided PON similar to todays
AGM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
