RE:RE:RE:RE:RE:RE:Capital destruction at its finestgrape562000 wrote: Metalcaster,
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
Sounds great, but not with this management team