RE:NKL is getting interesting
Hello, As French is my native language as Nemesis who post the more, I feel elegant to answer in French to him. I don't totally agree about the initial value. For my part, as I bought additional after the announcement and before vote, was a free cash flow. About, the pala'quote, it was clearly the value of Conic but if nobody buy it... Price of the market. The formula of Nemesis was (I try to translate). ((A*B*C) +(D*E*F)-G) *H*G A: volume of Nickel in lb (in the initial formula, price via tonne) B: Payability of nickel (85%) C: Price of nickel D: volume of Cobalt in lb (in the initial formula, price via tonne) E: Payability of nickel (65%) F: Price of nickel G: operational cost H: Percentage received by Conic from 2022 (35%). The other is used to pay back the debt. I: The percentage of Conic in Ramu (8,56%). After the refund (I understood operational debt but not clear), the percentage will increase to 11,3%. If you take the figures on page 3, you go to the amount of 7,4M$. The second formula is to calculate the price by share. Yearly value / number of shares in circulation * rate of CAD * valorization rate. Nemesis consider that a valorization rate of 20 is correct. Which go to 2,25 CAD. I added three remarks. 1) is the number of share is always correct due the stock option? 2) Why not consider the life of Ramu (30 years as multiple rate). Nemesis answered that could be when the debt fully repay. 3) The other royalties are not considered. And I think that's all. I hope was useful and clear (and not too much incorrect in the translation).