RE: RE: RE: Been away Interesting and many thanks.
My preference is to work with book value because that is checked and verified by accountants and auditors (and yes that can be sketchy at times).
NKL's book value is currently $1.10 per share. In order to hit your $12 the bv would need to rise to at least $4 thereby giving us 3x book for your $12. Even 3x book with 'just' rocks in the ground is loftly. The more pertinent question that has never been answered is how did the past owners get Wellgreen so very wrong (in valuation)??
So far as PCY is concerned, assuming NKL mv is $6, the npv of $365m with 30% dilution comes to
.65 from the
.45 currently. Rio, BHP, and Vale all trade between 2 - 3x book , so one must assume the lower (once the power plant is up and running!!!) or just $1.30 (2x book). That is a long way off.
That all said there is good upside on both.