RE:RE:RE:RE:RE:RE:RE:NSU downsideIf the Bisha mine was located in North America, NSU would be trading in the high teens to $20's
The geopolitical risks are there. That is not manipulation. You may disagree but the market is saying otherwise.
However, the new NSU, well that is a different story. Timok is a game changer. As of today, (actually the deal closes on June 23rd, I believe) the "disaster" value of the new NSU has risen considerably. As mentioned in my previous posts, that value was the cash in hand prior to the merger or $2.30 US per share.
Today that "disaster value" has risen to approximately $2.50 to $2.80 US per share, depending on the value assigned to Timok and mine building and operating team, management etc. and cash on hand.
NSU has traded in accordance with the "disaster value", plus dividend and not much more. I expect a market re-rating to take place within the next 12 months. Maybe much earlier, depending on analysts analysis and news releases on the progress of both Bisha and Timok.
Fast forward things say to the middle of 2018. Two years of current cash flows would amount to approximately $250 million, added to the current stash less payments for Timok exploration, Bisha maintenace and exploration. Lets for the sake of numbers estimate the latter to be around $100 to $150 million. That would increase the cash balance to around $350 to $400 million US, and confirmation of Timok reserves to the proven and probable and the likelyhood of additional inferred resources, a Pre-feasibility study being released, and increased reserves in Bisha.
At that point Timok would be close to a reality.
How much would you expect to get from your new NSU shares in that scenario?
Mine is not a "bullish" scenario but a realistic one, with surprises to the upside as the potential for Timok is huge!
All Aboard the new NSU Bull Express
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