Followers | 162 |
Posts | 7117 |
Boards Moderated | 0 |
Alias Born | 04/26/2010 |
Thursday, January 19, 2017 9:55:08 AM
ursusbrumae
January 19, 2017 - 04:55 AM 414 Reads
Post# 25726575
Voisey's Bay In-Situ Value
Another valuation methodology...
Take the in-situ value of the metal in the ground at Voisey's Bay in 1996, i.e., the market value of all the nickel, copper and cobalt, even giving generous allowance for asynchronous cycle high refined metal spot prices of 1995-96: USD 32.6B. Divide it into the acquisition price of Diamond Fields by INCO: USD 4.3B. 13% in-situ/cap ratio.
Measure the same for K&K, K & P; copper, zinc and PGMs, at current spot prices, at net interest of each project to IVN: USD 138B. Apply the VB in-situ/cap ratio of 13%, divide by float, exchange to CAD. The result? North of $30/share.
Take metal prices to old highs, and the amount is roughly double: $60/share.
Yet the resources are growing every day....
What are we at now, 3 dollars? 4?
Some may be reflecting on quick gains and an embarrassment of riches, thinking of taking some off the table, or hedging a little for prudence. Some may be wondering if it's too late to climb aboard. I would not endeavour to advise, but only observe...
I don't know much, but I have spent the past years and twenty thousand hours studying this narrow subject. Well, stock speculation touches upon a number of subjects: geology, engineering, metallurgy, technology, economics, finance, law, politics, history, psychology, and people. I shan't bore you with the details, but let me save you the twenty thousand hours. Here are the two things I have learned.
1. The best mining stocks in every cycle go up 20, 50, 100-fold or more, and often only in a couple of years.
2. This is the best stock of this cycle, or any I have ever seen or read about or imagined.
You may draw your own conclusions.
Now I am old with wandering, through hollow lands and hilly lands....
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM