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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 Oct 13, 2017 8:21am
106 Views
Post# 26808586

RE:RE:RE:RE:RE:Capital destruction at its finest

RE:RE:RE:RE:RE:Capital destruction at its finestMetalcaster,

Not sure how you arrived at $4B NPV, but if so, the market usually assigns something like 25% of NPV to a pre-production project. That would give PTM a $6 per share valuation...now. Of which PTM would get about half...$3 a share.

I have chosen to look at the PEA and assume a 4 year timeline to production. Fast forward and assuming 700K 4E ounces per year x $300 profit per ounce (my assumptions being $400 per ounce AISC and $900 per ounce PD and PT price - $200 per ounce overhead cost to get us there). Pretty conservative/reasonable I think. If even close to these numbers, that's $210M/2 ($110M) per year profit divided by the current 150M shares = $.70 USD earnings per share times some multiple (10x, 20x). Anyway you cut it, certainly 4 years down the road, this is much more than a $10 stock (even though we own only 45% of the project). But there is also the $1B cost to build the mine...

Anyway, I hope you're right - I would take $3 today. 

https://www.platinumgroupmetals.net/projects/waterberg/default.aspx
Bullboard Posts