Canada Nickel Company Inc V.CNC

NPV/MarketCap Multiple

[caramba71]

As we are all waiting for the key metrics (AISC, IRR, Cash Flow and many more), I calculated an after-tax NPV/MarketCap value and briefly looked at FPX (will certainly look at more companies): Their after-tax NPV/MarketCap is at around 12.5. 

CNC might be able to get a higher multiple considering the stage and circumstances (e.g. ttm).

At the current price ($4.15) 12.5 would translate into a after-tax NPV of 4.16 Bio.

What are your thoughts - realistic, too high/low....

[SeethingHedgie]

I think you may have forgotten to translate market cap to USD before calculating this ratio. Even after the 7% jump this morning, FPX's PEA NPV/MarketCap approximates 14.

[caramba71]

SeethingHedgie - you are right; the PEA states US$. That will get the 'required' NPV for CNC to ~4.15 Bio - US$. Considering what's in the ground @ crawford and the additional properties, my spreadsheet suggest an much much higher number. Even with conservative capex, rec rate and nickel price it appears we - if this all gets confirmed - are very much undervalued. By a lot. But what