Nevada Copper Corp NEVDQ

Metals & Mining Copper

Nevada Copper Corp is a Canada-based mining company. The Company is engaged in the development, operation, and exploration of its copper project (the Project) at its Pumpkin Hollow Property (the Property) in Western Nevada, United States of America. Its two fully permitted projects include the high-grade Underground Mine and processing facility, which is undergoing a restart of operations, and a large-scale open pit PFS stage project. The Property is located in northwestern Nevada and consists of approximately 24,300 acres of contiguous mineral rights including approximately 10,800 acres of owned private land and leased patented claims. Pumpkin Hollow is located approximately 8 miles southeast of the small town of Yerington, Nevada in Lyon County, one- and one-half hours drive southeast of Reno. The Company’s wholly owned subsidiary is Nevada Copper, Inc.

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Nevada Copper Corp > Current share value of NCU'S permitted open pit copper >>>

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Comment by Notgnuon Apr 25, 2021 4:20pm

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Post# 33063972

RE:Current share value of NCU'S permitted open pit copper >>>

See slide 23 for the combined open pit and underground NPV at 7.5% discount.

https://nevadacopper.com/site/assets/files/4209/2021-03-ncu-cp.pdf (Newest Presentation)

Notgnu wrote: So 666999, you actually believe the fully permitted NCU open pit, with an average long term copper equiv. grade of .5% copper has no share value to NCU?

666999's view from earlier today: "...forget other things including OP and land position, get real OP has no effect on share price for now Cheers."

I think I will stick with my own and with Goldman's valuation:

My valuation is derivided by taking NCU's NPV (itself calculated at a 7.5% discount rate) which currently is about $2,000,000,000 (thats $2 billion) and further discount that by 75% to get $500,000,000 ($500 million) and divide that by 2 billion shares which = $0.25 USD

In CAD that is $0.31 per share for the undeveloped open pit alone.

Add to that a sure to soon come cash-flow (basically profit) of over $150 million per year (65 million pounds of copper X $2.44 [after aisc of $1.86 taken away from $4.30 copper] ) and give it a 5 X multiple (itself very low) and divide that by 2 billion shares and get $0.37 USD which equals $0.46 CAD per share for the underground by the end of this year.

Add these together and get $0.77 CAD per share

Discount this again by an insane 75% and get today's price of $0.19

Goldman's valuation:

The report also notes that it takes two to four years for brownfield projects (expansions of existing mines) and as many as eight years for new greenfield projects. “This long lead time for the majority of copper supply, combined with the mining sector’s resistance towards new capex, leaves the copper market running out of runway to secure the necessary supply to meet demand in the second half of the decade. … Given the size of deficits starting from the same point, approvals and investments in mine projects have to start now.”

https://www.northernminer.com/news/goldman-sachs-calls-copper-the-new-oil/1003830196/

Cheers,
Notgnu