RE: Valuations... scrufMy friend, you are misinformed I don't fault you for that. In the end, what matters is the economics of the project, not the grade in isolation.
Basically, the grade is equivalent to .93lbs/tonne. If it will cost $10/lb to mine and process, and the current price is $33/lb, then what does that tell you?
The economics of moly mining have changed drastically in recent years due to the substantial increase in the price of moly. As a result, what was once sub-econmic, has become hugely profitable.
Futhermore, because LWC's deposit is AT SURFACE, the cost are much lower to mine than they would be for deposits that require removal of many metres of overburden (stripping), or even going underground to mine. This would change the economics dramatically. Each deposit is evaluated on its own merits and taking into account SIZE, mining costs, development costs, existing infrastructure, etc., and this is where LWC has a significant advantage over many other companies/properties.
Morover, the fact that the largest moly mine in Canada is just down the road from LWC's deposit, and is operating in virtually the same environment, is the strongest eveidence of LWC's potential for success. DO you know what TCM's current cut-off grade is for Endacko?
If you cannot grasp the significance of this, then you really have no business even being here in the first place. Due diligence requires investigation of such things in detail, not just looking at a grade number and making on evaluation based on what you have read about another company or project, or were told by people who think they know what they are talking about because they have read about something says that anything less than grade X is sub-economic, no doubt from documents that are several years old.
To be clear, what matters most in the final analysis is profitability. If that can be demonstrated with for any given deposit, despite the grade, then the grade becomes only relevant as a indicator of the economics of new zones of that deposit, rather than for the deposit itself. For example, if LWC establishes that 0.02% Mo is economic, but find an area in a new zone which is only 0.01% Mo, then we know that in that enviroment that area is sub-econmic and not worth mining.
What is key to understanding the value of LWC's NIthi is to compare it to TCM's Endacko, and not anything else, because that is an apples to apples comparison. If there is anything about comapring with these companies that is intereseting, it would be to demonstrate how much higher the costs will be to develop and mine just about all of these other properties. Furthermore, how many of these have the strong potential to establish a resource of 300 - 500 million tonnes?? If you are going to compare, you have to comare the projects/properties completely and not just their grades - this figure considered in isolation is, in fact, meaningless.
Do you realize that if LWC can establish 400 million tonnes of 0.028% moly, that would be 372,000,000lbs of moly. That's GPV of $12 BILLION at current prices, with a cost to mine/process of $3.72 billion. That leaves roughly $8 billion for infrastructure development, capital costs, taxes and profits... Or 10% of GPV is 1.2 billion, and even if LWC had 500 million shares fully diluted, it would still be worth $2.40/share based on the above scenario.
Can you find me somebody else who has this?
Reegards,
B.
Regards,
B.