Nickel Creek Platinum Corp (NCPCF)

[jjeeddoo7]

Quad est
Lenghy discussion...= worth at the end (at today's trading "value")

Some of the previoue posts talk of frustration...from us retail investors...totally understandable...however imagine if you were the accredited investors that bought in last year at 2.70 with warrants not "in the money" which is why I am aiming to discuss some of the reasons we are here and trading here.

we are here because we all know that we USE 38,212 pounds of new minerals Every Year

http://www.mineralseducationcoalition.org/sites/default/files/uploads/per_capita_2013.pdf

and we invest in this understanding

trying to understand the forces inside and outside of this company in respect to where we are is complex, but here goes...the past internal issues are beyond a year now...with the experience management team now in place we are good to go moving forward with an updated M & I and PEA . The outside forces are multiple: with the many issues created by the greed on wall street about 5 years ago, the fallout has been many governments taking over companies and social programs to keep their economies from imploding, in return, they have had to look at avenues to keep money coming into their coffers. Thus in relation to mining: resource nationalism
the more stable economies like Canada not so much, but looking at much more of the world and we read of it weekly. The unstable areas in Africa are really loud in the press. The one that perplexes many is how Mongolia has treated a Major mining(RIO) company, 3 million population, all could be millionares by 2020, if they do not screw it up much more...headlines are getting better as they have seen the world turn on their country for this attitude...on the bright side ...mining companies are figuring out a more open conversation planning process as they mine:
Resource nationalism retains the number one risk ranking with many governments around the world going beyond taxation in seeking a greater take from the sector, with a wave of requirements introduced around mandated beneficiation, export levies and limits on foreign ownership.

The uncertainty and destruction of value caused by sudden changes in policy by the governments of resource-rich nations cannot be understated.
We are observing three key trends of resource nationalism:
Imposition/increasing of royalties or mining taxes
The announcement in 2010 of a proposed new ‘super profits’ mining tax in Australia had a significant ripple effect around the world. Many mining and metals jurisdictions announced increases in taxes and royalties during the course of 2011–12 and many looked at Australia’s action as commercial cover for proposed changes.
Amendments to mining and tax laws can result in changes to capitalallocation based on a weaker risk/reward profile.
Mandated beneficiation/export levies
Many governments are now seeking to have minerals beneficiated in-country prior to export. South Africa has announced a beneficiation strategy, as has Zimbabwe, Indonesia, Brazil and Vietnam. In order to better ensure in-country beneficiation, governments are imposing new steep export levies on unrefined ores.
Retaining state or national ownership of resources
Governments are also seeking to ensure that they retain ownership of their minerals, which is not a new phenomenon. These changes in ownership laws can have a significant impact on the reward miners’ expect to receive for the risk they have taken as they have paid for 100% of the investment but will receive only a percentage of the future investment return.
There is no doubt projects around the world have been deferred and delayed, and in some cases investment withdrawn altogether because of the changed risk/reward equation.
Miners should continue to engage with governments to foster a greater understanding of the value a project brings to the host government and be better able to negotiate appropriate trade-offs that preserve the value to both mining and metal companies and governments.
This includes encouraging governments to take a broader view of the return from natural resource development, as well as negotiating tax incentives and offsets.
Steps mining and metals companies can take to respond to this risk:
Invest in transparent relationships with host governments to foster a greater understanding of the value of the project to the host
Align with the host government’s long-term economic and political incentives and thereby become an invaluable part of the infrastructure in the host country
Focus on generating direct and sustainable benefits for the host community through pro-active and well organized social and community development programs
Align with multi-lateral agencies, such as the World Bank, to achieve a ‘prominent victim’ status in the face of mounting resources nationalism
Partner with state owned enterprises that have strong Government-to-Government relationships
Encourage direct government participation
Because of the above, many investors have ran from the mineral sector...like we are not going mine, and moreover not use 38,212 pounds per year...we are only going to need more minerals as the "rest of the world" continues to grow...you have to realize that the WWW. has allowed the masses to see what many have...and they want it too!!

So let's get to trading valuation.

We all know we have had selling pressure for about 2 years...well, so have all the rest of miners, bar a couple, but overall...hammered. Even the ones below have not been spared, all with solid resouces like NKL.

Platreef of Ivanhoe mines in South Africa, 28.5 million PGM's in the M&I. well know salesman at the helm there, Japan firm bought 10% of the deposit for 280 million. Underground starting at 700 metres on down...entire mills concentrators,etc will be underground as well to soften their footprint as they say...good pitch...but it is smarter more cost effective to take out the 1% of the rock you will use and keep the 99% waste rock or tailings down there...rather than taking 100 percent out and returning 99%,,,from an environmental perspective it makes it easy to sell...out of sight out of mind, so to speak...in reality...they have no choice at those depths...kinda of like Duluth Metals in MN. We are at surface, almost sticking out of the Earth, kind of like Polymet in MN. Back to Platreef and the amount of shares that make up this company.
http://www.ivanhoemines.com/s/StockInfo.asp
Shares have been nailed this year...they have 529,061,000 million shares...wow
and they have about 9% shares short!! From a Mr Friedland deposit?
http://finance.yahoo.com/news/ivanhoe-mines-begin-sinking-bulk-112247119.html

underground mines cost billions to fire up


heading to Canada: Platinum Group Metals 17.5 million PGM's at Waterberg
they have 419,000,000 shares trading on the NYSE just over a dollar



http://platinumgroupmetals.net/news_releases/2013/index.php?&content_id=398

for the discussion here, estimating the M&I will possibly get to 14-16 million PGM's by spring...would you rather have a company with 99,000,000 shares, and a near surface deposit, in a mining juristiction?

or in this neighborhood I grew up in that every environMental-ist on the planet is fighting?
http://www.polymetmining.com/wp-content/uploads/2013/02/2012_panels_coppernickelpgm_september2012.pdf

I own property in this region, I do not want my lakes, drinking water and planet destroyed...but I understand mining will happen with a lessor footprint than we did years back...mine closure plans and up front funds for cleanup are required...no brainer...next.

NKL management is looking at a staged production of higher grades with a lower CAPEX at startup of 300-400 million. This is solid reasoning and the bankers down the road these days want to see this type of mining...less risk for them with a faster payback.

to add one situation, acute skills shortage: Many areas around the planet are having issues finding quality skilled workers...We are in the Yukon and the company has expressed that they have a good working relationship with the local First Nations Group. This is mining country!!
Steps mining and metals companies can take to respond to this risk:
Source skills from aligned sectors and a broader demographic
Account for demographic and diversity factors when making investment decisions
Initiate programs that encourage semi-skilled and retired workers to re-enter the work-force
Target initiatives to retain critical skills held by older workers close to retirement
Create employment packages focused on career development opportunities
Implement early labor scheduling and sourcing within mine planning
Develop sustainable skills development programs to fill these gaps
Develop strategic alliances with institutions and communities
go to pages 9 & 10 of the latest presentation
http://www.prophecyplat.com/pdf/Prophecy_Platinum_Corporate_Presentation.pdf

glad I got a nap in with the NASCAR rain delay...

seriously, when the investment world 'wakes' up again to mining the minerals we consumers use daily and the miners that dig em up...this company is one to recon with.