NKP 0.00% 9.9¢ nkwe platinum limited

enterprise value per oz and nkwe

  1. 8,493 Posts.
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    Some thoughts on using EV/oz for valuation of NKP,

    See link below,


    http://mineweb.co.za/mineweb/view/mineweb/en/page35?oid=91464&sn=Detail


    Scroll down half way, there is a table detailing major, mid tier and other significant companies in the PGM sector with market cap and EV/t calculated back in October. A bid old but figures will be ok for this. Youll find most producers and developers trade in the US$20-$40/oz range which maybe a bit surprising compared to gold producers which are typically +US$100/oz.


    I suspect some of this difference (especially for Anglo) is due to the percentage of ounces that sit on the balance sheet of major producers but may not hit the real bottom line for decades, if at all.there are other issues which may include mine closures/high cash costs for some of the above companies.


    Generally ev/oz or EV/t will be less successful as a valuation tool for large long life (+40 years) operations such that NKP are aiming for. As the BFS progresses would look at net cash flow, both discounted and undiscounted, at a range of PGE prices for NKP valuation rather than just EV/oz or gross in ground percentages of market cap.


    I know others have mentioned this in past weeks and months on NKP thread but good to highlight again with updates due next month.
 
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