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Platinum Group Metals Ltd T.PTM

Alternate Symbol(s):  PLG

Platinum Group Metals Ltd. is a Canada-based platinum and palladium focused exploration and development company. The Company is the operator of the Waterberg Project, a bulk underground palladium and platinum deposit located in South Africa. The Waterberg Project is located on the Northern Limb of the Bushveld Igneous Complex, approximately 85 kilometers (km) north of the town of Mokopane. The Waterberg Project covers an area of approximately 29,161 hectares (ha) consisting of the Waterberg Mining Right, one active prospecting right, and one application for the incorporation of two adjacent farms into the Waterberg Mining Right. Of the total project area, 20,482 ha are covered by the Waterberg Mining Right. Waterberg is a joint venture between the Company, Impala Platinum Holdings Ltd., HJ Platinum, which consists of JOGMEC (Japan Oil, Gas and Metals National Corporation) and Hanwa Co. and Black Economic Empowerment (BEE) partner Mnombo Wethu Consultants (Pty) Ltd.


TSX:PTM - Post by User

Bullboard Posts
Comment by grape562000on Sep 29, 2017 3:28am
115 Views
Post# 26757215

RE:My conjecture

RE:My conjectureUsing back of the envelope math it seems to me that we are being valued at roughly 40% of ~$500M NPV at 8% discount as reported in latest PFS ($200M Waterberg value). 40% is a reduction from our current 58% ownership and assumes the sale of some of our interest in Waterberg to pay remaining debt and raise cash to move forward.

Generally, at the early stages of a project, the assigned only a market value is 25% of full NPV.

That said, at some time in the future as we near completion of the Waterberg mine, we should be assigned something approaching $200M (maybe $1.50 a share) but of course, this would increase as does the PD price (assuming it rises).

As we enter production 4 years from now, earnings per share should be substantial and the share price everyone has been hoping for can be realized.

As Allin2win has said, now would be a good entry point for anyone with a long term perspective. For anyone underwater, either hold you nose and average down or sell and take the writeoff. Re-enter down the road when the picture becomes more clear. Anyway, as always, this is just my view and opinion of things.
Bullboard Posts