RE:NPV = $70 per shareHello Lauren.
Stated another way, if one accepts the $70 per share valuation derived from the Plant 3 scenario NPV (producing and selling 10 Mtpy at an average retail price of US $368.65) you would expect to earn an 8% return on your original $70 investment. Clearly buying a Verde share today at under $10 represents a very favourable entry point which would then be expected to generate a significantly higher ongoing return on investment.
The Company provided investors in 2017 with the Pre-Feasibility Study with similar NPV conclusions, when shares could still be acquired in significant quantities at price under $0.60. That being said, much of the 2017 analysis was based on estimates and best guesses, and very limited pilot process testing. Five years later, with a cash flow positive and rapidly expanding operation, critically derisked in many areas, the current document has little to do with feasibility and instead seeks to assess several alternative paths to optimal production and shareholder value creation.
Any investor who has a longer term investment timeline that allows commiting to a 5 to 10 year horizon should take the time to absorb all that is in the 2022 document Verde has just released, and compare the opportunity represented by an NPK share at $10 versus any other publicly traded company, especially on a risk adjusted basis. My money is happily invested in Verde, and will remain there for the forseeable future.
Cheers,
S.