ELE 0.00% 6.9¢ elmore ltd

nsl true worth post jv

  1. 158 Posts.
    Say if the JV entitles NSL to 200MT/2 = 100MT rights at 60Fe

    You would have to consider the extraction costs and the recovery rate would most probably not be 100%. So say extraction costs are $15/Tonne and recovery rate is 70% - this would mean to me that 200MT * 70%=140MT

    - Recovery costs and overheads per Tonne = $15 per tonne/ 70MT*$15 = $1.05B

    140MT /2 = 70MT * $80 per tonne (conservative) = $5.6Bill Marketable in ground resource.

    Hence a true valuation without taking into account the time value of money would be = $5.6B-$1.05 = 4.55B

    Current Shares on issue = 250mill
    Share Price = $18.2

    Ok lets be very conservative and take 10% of this – that is still $1.82 now that’s value.
 
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