From April 12, 2017 NR: $700. net profit (with costs sub 300 an ounce for the early years) with minimum 1.2 Million ounces per year production = $840. million net profit at today's approximate metals prices.
Given the revolution taking place in EV's and Cell fuel auto industry, the odds are overwhelming that future metals prices will far exceed today's platinum price, and all of this increase falls to the bottom line.
I read somewhere, perhaps in an article JB posted, that the new cars may use 10 times as much platinum as current gas powered autos. I have no idea how much this affects the price of the metal but it seems to me probably enormously. EVs and cell fuel look to be the future for growth in the trillion dollar global vehicle industry. Think about it. There are many dozens of models now in advanced stages of testing or coming onto the market. ALL MANUFACTURERS. The Global vehicle industry is banking its future on this market.
For instance, at even $1,300 ounce platinum price 5 yrs hence, (costs of 300) the profit is a thousand per ounce = $1.2 billion net revenue. One can say we will not be completely operational at that time, true enough, so let's say we have 2/3 of the 1.2 million ounces in production....the market will be looking forward to the last 1/3 of the mine plan as well. .
Our platreef platinum palladium and gold mine being part precious metals, I could see a PE attaching to these earnings of 20 easily.
Yahoo shows African Platinum giant Anglo Ashanti to be making 9 cents a share, with a PE of 85. That stock was up nicely today.....A 20 PE for these earnings would appear to be laughably low and conservative. AND REMEMBER, WE WILL HAVE A STATE OF THE ART FACILITY, which makes other producers look like awful dinosaurs. Our PE for this stream will be far higher the more I think about it. Gold miners and silver miners, and silver has similarities to plat and palladium also have far far higher PE's.
so earnings of $1.50 per share bucks = $30 a share. Just for our Platreef asset. If you only want to give me credit for 2/3 of the then existing production, we are still at 20 bucks a share. With another 1/3 of the earnings in the next couple years on the way.
Throw a PE on there of 40, and you double the fun and the share price. From 40 to 60 for this our one asset. And make no mistake, in 5 yrs from now, EV's and cell fuels will be all the RAGE...COVER OF GLOBAL MAGAZINES. WE WILL BE THE TOAST OF THE TOWN....You can forget about a PE of 20. We will be all the rage!
Crude analysis but in the right direction for sure.
Patience.
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The feasibility study will further refine and upgrade the findings of the Platreef January 2015 pre-feasibility study that covered the first phase of development, which includes construction of a highly-mechanized underground mine, concentrator and other associated infrastructure to support initial, estimated concentrate production of 433,000 ounces of platinum-group metals per year.
Ivanplats plans to develop the Platreef Mine as an underground mining operation in three phases: 1) an initial annual rate of four Mtpa to establish an operating platform to support future expansions; 2) a doubling of production to eight Mtpa; and 3) another expansion phase to a steady-state 12 Mtpa. At a projected production rate of 12 Mtpa, Platreef would be the largest platinum-group metals mine in the world, producing more than 1.2 million ounces of platinum-group metals per annum.
