Good work team. NKWE Platinum is back in action. I would love to see the patience of shareholders being awarded and if possible, to have the options extended on the basis of the three month long suspension as a result of the court case and allegations against Genorah and NKP.
This short term set back has not only pushed back the SP, it has delayed potential JV developments and struck the chord of uncertainty in investor's confidence. Trust and faith in the project will take time to build once again.
The market amidst the current uncertainty and economic woes of Japan, is valuing NKP below Net Asset value at $200m, referring to the latest Half yearly Report is at $222m excluding the impairment loss recognise for the two Tubatse projects. Limited value is place on the substantial value we have in 68.5m+ JORC compliant PGM resource. The market being more risk adverse need to regain confidence, see positive developments and signs of the long awaited 'completed' BFS and any JV progression update to bring NKP home to the $0.70+ glory days. Breaking the $1.00 levels is a reality once a JV is signed to remove funding risk and bringing development closer into sights.
To note:
1. NKWE Platinum will be presenting in Hong Kong at the Mines and Money exhibition, 24th of March 2011, 1340 Hrs.
2. $60m was paid to IGC to consolidate position in Tubatse a further $15m. This implies a value of around $255.6m for Tubatse alone for rights ownership, pre-development.
3. Base case NPV of Garatau alone at USD 2b.
4. Xstrata JV and other potential JV partners active (any news from JV developments will give the much needed boost to NKP).
Looking forward to see if the final optimised project path incorporated in the completed BFS will be release in May 2011. With so many delays, I am hoping the BFS is some kind of magical, rare treasure with sparkling diamonds or over it... With the rights secured combined with DMR backing and a positive track record in securing prospective rights. It is amazing to know that NKP have such a substantial world class asset like no other I have came across for a small cap company. I really hope to see a JV partner sign up soon for NKWE! Before end of August 2011 would be nice.
All the best to all holders and a big thank you to HC supporters! We got our rights back baby :)
Now where were we? BFS and oh.. Xstrata....
LM
NKP Price at posting:
36.0¢ Sentiment: Buy Disclosure: Held
