Passport Potash Inc fka PPRTF

[investora2z]

PPRTF is trading above the short term averages of around $0.21. This level has provided support to the stock during the last few weeks. It has moved up from $0.18 to $0.25 before correcting to the current levels. The volumes have been low with the 10 day average of 80K shares being substantially lower than the 3 month average of 133K. The $0.24 level remains the key resistance as it is the half way point of the 52 week range ($0.16 to $0.35). The stock has tried to cross that on a few occasions but the volumes have not been supportive. The news about the company winning a lawsuit against it in Utah by North American Potash Developments Inc. and parties (NADP) has provided some support. The exploration permits held by NAPD have been assigned to PPRTF which implies that it has effectively paid for and acquired royalty free interest in the 25 Arizona State Land Department exploration permits on the east side of the Holbrook Basin which were earlier held by the NAPD Group. As per a recent report, the valuation of the reserves in the mines held by PPRTF is estimated at $3.25B (pre-tax NPV@12%. After tax value being $2.19B. The capex and opex were estimated to be $1.949B and $114 per tonne respectively, which are below the industry averages making the mines cost efficient. These valuations give a payback of 8 years as the mines are expected to produce 2.5 million tonnes per annum. The measured mineral resources (including Passport and Hopi properties) are 34.77 MT and indicated mineral resources (including Passport and Hopi properties) are 363.17 MT. These calculations indicate the long term potential as far as the revenues are concerned. Calculations can be made about valuation of the stock based on these figures. When the potential is realized, the current prices will surely seem to be missed opportunities in hindsight.