Lots of Potential in the Duluth AreaHope POM/DM holders don't mind me re-posting this here.
Made this post earlier today on the FRA board. Although this does concern Franconia Minerals, it shows what can be achieved by all the companies in the district including Polymet and Duluth Metals
smilewithme
Analyst Report: $1.60 to $33.24 at Today’s Prices
According to the latest independent analyst report (Northland Securities 8th Feb, 2008), depending on metals prices, FRA share price could be reach $2.50, $5.08 or $33.24 based on Birch Lakes NPV at 10% Discount rate. And these figures don’t include Spruce Road copper-nickel deposit, underground (124.4 million tons) or open pit 376.7 million tons.
FRA today, are around $1.60 so there’s still plenty of upside and multi-bagger potential.
“We are initiating coverage of Franconia Minerals Corp. with an OUTPERFORM rating and a 12-month price target of $2.50, which is the Company’s current net present value using base prices at a 10% discount rate. We believe this valuation will gradually increase as FRA discovers more resources, better hydrometallurgical recover rates, gets closer to government approval, and actually begins mining. Other variables that could increase this valuation include continued pricing strength in commodities and more technological innovation requiring the use of these rare metals”
Base Case Copper Price is $1.50lb (compared to today’s price of $3.68)
The analyst report continues to consider what is possible using different metal price as shown below. Using Base Case +10% eg. Copper $1.65, then Franconia could have a share price of $5.08.
And Northland “also believe that it is worth evaluating FRA’s prospects using the current pricing of commodities, as it is possible that world demand and a limited supply will likely keep pricing at a high level. As of January 23, 2008, holding all else equal” shows $33.24.
..
