Imperial Metals Corp T.III

Market's valuation of III

[miningfundi]

The prevailing low market value of III is interesting. It may be that investors do not fully understand how mining companies are valued, that ratios like P/B and D/E are meaningless, especially for a rapidly growing mining company like III. The value of Mount Polley has grown significantly following excellent drilling results deep below the planned Springer pit. And, of course, the huge upside value of Red Chris will only become apparent when the RC Block Cave feasibility study is reported.
 
But maybe the insider positions in III are more important – ME owns nearly 50%, and insiders in total own well over 50%. Insiders are certainly in no rush to do a corporate deal.

[miningfundi]

Perhaps III’s current debt position and future financing capacity is spooking investors, resulting in the extraordinary low III share price? This is unjustified since the fair values of both Mount Polley and Red Chris are significantly higher than the very low market values underlying III’s current poor share price. There is no doubt that the value of Red Chris determined by the feasibility study