NPV numbersDSO - NPV@8% = 465M x .20equity = 93M
KeMag NPV@8% = 8,600M x .20equity = 1,720M
LabMag NPV@8% = 8,600 x.20 = 1,720M
(no PFS on LabMag, but seeing it is a larger deposit placing the same NPV as KeMag seems conservative)
Total = 93 + 1,720 +1,720 = 3,533M
20% of the NPV (since it is still undeveloped) of NML's 20% equity stake is 707M.
This is not far off the current market cap of 666M, but if you take into account that
- NPV's were calculated using a pellet price of $90/T and the current price is $200/T.
- Also developing both KeMag and LabMag will bring economies of scale.
- The LabMag deposit is bigger.
- doesnt take into account the option NML has to take up to a 40% stake.
this still seems undervalued. Now that we've secured financing contingent upon the Taconite Feasibility Study; a share price over $6 tomorrow would not surprise me.
Should mention the scale of this project; NML's iron ore reserves are triple the rest of canada's.
GLTA.