RE: Some light reading for those thinking of investing:-31 Jul 2020 15:52
We know the directors have a massive amount of skin in the game, a fantastic plus point.
we know the company has at last turned the corner and is starting to make some money.
We know the company has no debt now and has stated it will not require to raise funds going forward, growing organically.
We know the company has removed the middle man and has since last September started to mine itself on a 100% basis.
WE know the company mines a valuable product that is rare and very valuable and will be required in larger quantities.
We know the company has been around for 25 years and is not new.
We know the company has one of the cheapest open-pit mines to operate.
We know the company has directors fully aligned with shareholders.
We know the company has got two of the largest world banks involved to sell either the whole company or its assets.
We can all speculate on what the sale values may be going forward.
We, as investors in this company, can see the potential, and only see a fantastic investment opportunity that is worth much more than currently, and could easily multi-bag 3 - 8 times from here.
We see the share price as massively undervalued, but as the value is in the assets and not directly in the company this can cause a problem for any new investor, as all the existing stock valuation calculations go out the window, if we look at the company revenue as an example at this time, as the company has only just started to make a profit that is not a good historic metric to go on, and until the assets are sold and that value added to the company coffers, it will not be reflected within the share price, a dilemma for any new investors who try to assess our true value at this time, as we have not yet seen the mined 2019 output figures but expect them not to be great as output was capped by incorrect license application and 70% going to middle man, things have now changed and the company is due to ramp up production in 2020 and going forward, there are so many positives but are all going forward and not reflected in today's share price. we have all done our research and due diligence but the new investor may just try and use the normal company valuation yardsticks, so unless any new investor has the foresight they may miss out on this fantastic opportunity to invest here. One of the company's mines has circa 2M oz of PGM's, more in the to be added flanks and with only the current low mining output, the company anticipates a 16-year life of mine producing 125,000 oz’s palladium equivalent per annum, Assuming a 20% discount (for the smelter) and a long-term palladium price of $1,900 oz. 125,000 ounces ($1,900/oz 80%) = $190 million revenue per annum.
This minable output is due to be increased and ramped up in 2020, the company if it does nothing and just carries on just prints money going forward. The board and senior management are perfectly aligned with shareholders and want the best price going for this in a company sale.....