RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:13.5% copper grading with after-tax IRR of 106% for TimokI am a shareholder of Nevsun because of Reservoir Minerals. It bothers me a great deal to see this kind of posts making statements like this without any supporting information or facts.
I am an investor and I do not work in the financial industry. Why is Nevsun a cdn joke? Why is it a sell? Where are your supporting facts? I have seen your kind of posts before for other companies? Are you hired to do this kind of posts with an agenda ... like pushing the prices down so you can benefit with your put options? ... and other agenda??
This is my view and here are my analysis and reasons that Nevsun is a valuable company offered at a very cheap price. Those who sell because you have seen posts like thesunsets will kick themselves down the road.
1. Price of Nevsun is $3.78 per share; yet the cash per share is $2.19. So you are paying ~$1.60 for the share really. This is very cheap compared to the peer group.
2. Shareprice is trading just ~10% over book value only. For a company with a healthy revenue, 5% dividend, a world class deposit in Timok ... stock price is cheap.
3. Annual revenue $332M for a ten year mine and expanding. If you just take the revenue over the next 10 year and do a present value; you will get way more than the market cap value.
4. Zinc production is coming online this end of Q3. this will add to revenue and profit. September is only two months away.
5. Annual revenue alone show that share price is cheap. Now with Reservoir which has a very high grade top zone owned 100%, IRR of 106%, initial investment of $30-50M with a payback of only 0.6 year. Production of the top zone will give a lot of revenue and this is only a few years away. Hope Nevsun will announce their plan on this.
6. The lower zone at Timok is huge even though the reserve is not completely defined yet. This is world class deposit and has 20+ year mine life. I hope and trust that Nevsun will do more drilling and defined this quickly.
Companies who have real values and are trading at cheap prices will have their share prices catch up to the value eventually. I have seen this over and over again. It is not a matter of if, but when.