Post by
apapas1973 on Jun 16, 2023 12:50am
A more realistic valuation for EVNI.
I'm not including any of the higher grade properties for either EVNI or CNC. Keep in mind these are ball park numbers. But we shouldn't be trading nor do I think we'll continue to trade at these low valuations. For the sake of argument, I'll use CNC Crawford numbers. Don't forget CNC is much further ahead in permitting, PEA is complete and feasibility is scheduled for the fall. I consider them a little more derisked. They deserve a higher premium. They also have a slew of large properties but I think they're getting very little from those towards valuation.
At the moment, they're 3.5MT of contained nickel for Crawford. We're about 2.4MT and that's on the first 20% of the property ( mind boggling). For sake of argument, I'm assuming our property will prove to be continuous (consistent grades). So approx 12MT of contained nickel. I'm going to add 2 more large properties to Crawford, that they're currently drilling. Each of these being a little less than double Crawford. Again assuming everything being equal with no surprises to the upside or downside. That gives them appro 15MT of contained nickel.
The market is currently giving them a valuation of about 160 million for basically Crawford. Our valuation? 6 million for the first 20% of the property almost the size of Crawford.
There's dilution coming for EVNI. No way around it. We'll need cash. Even if I add 15 million to the float for a share offering at today's price of 12¢ ( about 2 million in cash) there's no reason why we can't move to approx 25 million valuation. That's 4 times today value. And still 1/6 CNC's valuation. And don't forget analysts are saying Crawford is trading at a fraction of what the peers are trading at. Imagine that. I'll say it again. These 2 need to merge. They're in close proximity and they can combine their assets both high and low grade to become number 1 in the world. GLTA