FA - N27, page-4

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strateg1c8

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13/02/18

13:18

Post #: 31020373
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Originally posted by strateg1c8 ↑

Looking to start a fundamental analysis thread to get thoughts on drilling results and the future SP of the company and the environment it operates in.

Have been trying to assess the deposit they are sitting on, however because they have not released definitive results of each it's difficult, so far I have the following - not including discounting.

500,000t of Co @ 0.17%, Ni @ 0.09%, Cu @ 0.11%.

From this I've taken the following:

Co - 500,000t * 0.17 = Co 85,000t
Ni - 500,000 * 0.09 = Ni 45,000t
Cu - 500,000 * 0.11 = Cu 55,000t

Taking these a bit further to calculate the sale price of the resources gives us the following (prices as of 13 Feb 2018):

Co - $81,000 USD * 85,000t = ~$6.885b USD
Ni - $12,900 USD * 45,000t = ~$540m USD
Cu - $6,800 USD * 55,000t = ~$374m USD

Total = ~$7.8b USD = ~$9.9b AUD

$9.9b / 24,067,500 (shares on issue) = SP $411.34

***Note. This does not take into account the cost of processing the resources which can run quite high. Especially in the NT.

This share price seems extremely high so I feel as though something is not right here.... The cobalt is what could be throwing it out, however these prices were acquired from tradingeconomics.com. The deposit they provided in there last ASX announcement on the 5th of February indicates these levels and the shares on issue were taken from the official ASX quotation when they first listed...

Pretty new at this, so any feedback that can be provided is much appreciated!

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To rectify, the above should actually be the following:

Co - 500,000t * 0.0017 = Co 850t
Ni - 500,000 * 0.0009 = Ni 450t
Cu - 500,000 * 0.0011 = Cu 550t

Co - $81,000 USD * 850t = ~$68.85m USD
Ni - $12,900 USD * 450t = ~$5.4m USD
Cu - $6,800 USD * 550t = ~$3.74m USD

Total = ~$78m USD = ~$99m AUD

$99m / 24,067,500 (shares on issue) = SP $4.11

Last edited by strateg1c8: 13/02/18

N27 Price at posting: 44.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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FA - N27, page-4

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