Malcolm Shaw: PLS $500 million minimum New Comment at Seeking Alpha:
"It's my belief that shareholders won't get to see the full size of PLS before it is purchased by a larger company. In my view, the writing is on the wall in terms of the geology... This is a substantial shear zone that is extensively mineralized along at least 800 meters, which is all that has been drill-tested to date. Whoever owns PLS will hold the keys to the Western Athabasca basin. Combine that strategic value with high grades, near surface, just off a 4-season highway (with Ft McMurray close enough to provide logistical benefits) and this is a critical deposit in terms of the potential economics and the overall Athabasca Basin development picture.
"Shea Creek and Centennial (aka Virgin River) are two known deposits that would benefit greatly from synergies with a future PLS development. At this stage, with both FCU and AMW fully funded well into the foreseeable future, I would see $500 million as a minimum project value as 50 mmlbs comes into focus. Given the impressive early drill results from the summer program, combined with the substantial untested strike length along a proven fertile shear/contact zone, I believe that the initial 50 mmlb resource target is coming into focus quicker than most would have expected.
"I believe that the importance of PLS has already been recognized by the most important players in the industry and that whoever makes a play for the project first will be stealing it before its full potential is known to the market.
"If this were 2006 or 2007 (or even late 2010/early 2011) and the spot price was on the move, I have little doubt that the PLS project would already be valued well in excess of $500 million. The spot price is virtually meaningless with respect to the fundamental value of PLS, as this is a deposit where any buyer will be looking 3-5 years out. The market doesn't get to choose when exceptional deposits are discovered, but their value is always realized by those who know that scarcity, by definition, is worth a premium in any market."
Link: https://seekingalpha.com/author/malcolm-shaw/comments