RE:RE:Numbers Breakdown in DFSI just want to bump this since it got lost in the shuffle on Wednesday. Kerry seems to have confirmed that this should be worth about 50% (I say 30-50%) of the NPV right now.
Yes, typically PEA 0.1 to 0.3 X NAV (or NPV), PRE-FEAS 0.3 to 0.5(or 0.6) X NAV, and FEAS 0.5/(or 0.6) - 0.8X
Buy-outs tend to be around 0.8 to 1X, but there are many variables that go into a buyout. Another item...when figuring a target price, use the Outstanding Shares (currently 170.1M). Many make the mistake of not estimating the O/S at some future point.
One thing that is concerning about this stock is that the main payable metal is palladium. There is a natural eb and flow with palladium and platinum pricing because these metal are inter-changeable for end use products. It is possible that palladium price will head down below their assumed long range assumption used.
Substitution of platinum for palladium in response to price misalignment is not a new phenomenon. The US first introduced emissions standards in 1974 which required the use of auto catalysts. This led to the use of both platinum and palladium in internal combustion engine vehicle emissions control.