We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I like the £1.17 figure you have arrived at aandi.
GLA
Interesting would inflation need to be factored in as well.
Update in reply to Steelstones request for a comparison between Voisey's Bay Nickel mine sale and Eurasia's MT mine potential sale price.
http://bc-mlard.ca/files/presentations/1996-9-DOWNING-case-study-voiseys-bay.pdf
3 main aireas ranging from 15m to 950m below surface (the majority being at deeper depth so mainly underground mining to commence after 7 years of a 20 year mine life)
Potential reserves 150m Tons
In 2006 reserves were estimated to contain 1.6% Ni, 0.8% Cu, 0.1% Co
https://www.sec.gov/Archives/edgar/data/1362734/000117625606000397/exh55gairc43101report.htm (page vii)
In 1996 the price of nickel was $8750/t, copper $2200/t, cobalt $33000/t (approx)
$21Billion lithium
$2.79Billion copper
$4.93Billion cobalt
=$28.7 Billion metal resource/reserve 75% owned by Diamond Fields resources sold for $3.2Billion ($4.5B Canadian)
That is 11% ratio of in ground metal value to sale price. That would be like paying £194 per oz Pd(£1,740.00/oz today), which lets say the resource at MT is 13.5moz (accounting for today's basket of metal price of Pd eq), that's £2.58B or around share price of 90p.
This was for 75% of the company, so add 5%
The deposit in Voisey's Bay requires blasting and later on an underground mine needs built so I imagine the cost per oz to be much higher.
Not sure of potential in the wider area, at MT there is minimum 3.5moz (again I am reducing this from 4moz to reflect todays Pd eq rate) so minimum 26% more.
This puts the final sale price at £1.17 (including resources within the 5km zone) - in comparison with that deal in 1996.
Oh wait, please just scrub that whole last message from your memories.
The prices in 1996 were all relative to 1996 commodity prices at the time. So relatively they got 23% sale price for in ground metal value. That's all that matters here, nothing to do with inflation sorry.
"The inflation rate in the United States between 1996 and today has been 67.53%, which translates into a total increase of $67.53. This means that 100 dollars in 1996 are equivalent to 167.53 dollars in 2020"
So my figure of £1.68 adjusted for inflation gets us to £2.81.
You just wonder if the resource size grew in those 10 years, or if once proved up it was smaller, and how much of the resource they got round to mining.
Sorry but that's as deep as i'm willing to go. It's a positive comparison for us anyway, if thinking about including any of the 40moz into the sale price then i'm quite confident my £1.50 sale price estimate will be easily achievable this year.
Also aandi dont forget that was in 1996
Can't find the resource size of Voisey's Bay in 1996 but in 2006 it was 70m Ton
Measured, indicated and inferred resource at 1.6% Ni, 0.8% Cu, 0.1% Co
https://www.sec.gov/Archives/edgar/data/1362734/000117625606000397/exh55gairc43101report.htm (page vii)
In 1996 the price of nickel was $8750/t, copper $2200/t, cobalt $33000/t (approx)
https://www.indexmundi.com/commodities/?commodity=nickel&months=300
$9.8Billion lithium
$1.3Billion copper
$2.3Billion cobalt
Also some extra in reserves but only 2 or 3% of the resource is in the reserve category so have left it out.
I guess the resource got bigger from 1996 to 2006 as more drilling was done? Sorry this is a big unknown.
$13.4 Billion metal resource/reserve 75% owned by Diamond Fields resources sold for $3.2Billion ($4.5B Canadian)
That is 23%. That would be like paying £360 per oz of PD, which lets say the resource at MT is 13.5moz (accounting for todays basket of metal price of Pd eq), that's £4.86B or around £1.68 share price
Voisey's Bay was a famous area that sold for $4.5 billion(?) back in the day....i understand that was mainly nickel. But would any of the boffins out there be interested in comparing the scale of that resource to what we know EUA have/potentially have- albeit different metals.
The bidding back then started at $3.5 billion. So surely the big boys these days have plenty of cash to play with.