GREY:NEVDQ - Post by User
Post by
metalslugon Mar 23, 2010 4:55am
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Post# 16912184
Valuation
ValuationStick to the facts and let that guide you. I don't know, but I think the PEA says a lot:
"At a US$2.50 copper price the project's discounted NPV at an 8% discount increases to US$1.1 Billion."
Last time I checked the copper was trading at $3.34/lb.. the NPV at a $3.00 copper price is around $1.9 billion.. according to the PEA.
NCU has a market cap of under C$150 million.. to me it just seems VERY undervalued. There surely can't be many other projects as large as Pumpkin Hollow that trades at well under 10% of the Net Present Value?
The high grade portion alone of Pumpkin Hollow has at $3 copper an NPV of $784 million with an IRR of 60%
In production, it's going to be one of the largest copper mines in the US. Pumpkin Hollow is massive.. Just wait until analysts starts covering NCU...
I'm going to wait this one out while watching the resource grow even bigger. 48% of the 45 million outstanding shares are being held by the management, Capstone and ZTS.. one should take every opportunity to load up if the share price dips.. my opinion.