CLQ / AUZ / PGM Neighbourhood Peer Group
CLQ has 750 mill shares and 150 mill in cash with next qtr expected burn at 17 mill ................ what do they have to show for it ??? Sp breaking down in capitulation mode now by looks. Cash backing is 20 cps ......and maybe that's where the real bottom lies ? Tech support PP at 35 first.
AUZ has already slid over the tech cliff face ....... next tech support is abt 5c with real support beneath at breakout PP of 2.2 Have 9 mill in cash with next qtr cash burn est 4 mill .......... with even less to show for it ..... lost track on how many shares they have but suspect close to 3 billion shares by now. I don't think 5c will offer much support. Wonder at what price the next capital raise ??? Reckon we will AUZ at see 2c again.
PGM has paid for pilot plant and has enough to complete its DFS for modest initial PRIMARY Sc production at Condobolin. A modest supply contract and it can get its modest capex needs thru project financing and beat everyone to the punch in being FIRST to produce something.
PGM has one third the shares of CLQ and one tenth the shares of AUZ. IFFF priced at MC equivalence with its "peers" PGM would be NOW priced at 75 cps cf AUZ or 180 cps cf CLQ.
At where I think AUZ and CLQ are heading, that would equate to a conservative equivalent 20 - 60 cps for PGM.
IMO PGM has a greater cornucopia of primary assets than its peers and should ultimately be worth much more on relativities. e.g a small INITIAL and scalable primary Scandium producer at Condobolin, which is on the cards, and earning say 10 mill net/4cps pa should see PGM sp at 40 cp on PER 10 maybe in mid term. I would expect that as a fair price in current market conditions on ONLY initial primary Sc production, maybe in 2019-2020 ....... and note the new boys' options are time targeted around then for incentive.
I have made NO allowance for later Cobalt-Nickel laterites twin project similar to and only 7km from CLQ and for which CLQ is currently valued by market at 400+ mill, NOR for Skaergaard project with its own unique valuation possibilities which I think can be worth multiples of Owendale and which should be pro-rata in-specie distributed to shareholders and spun off as separate entity ASAP !!!
Just doodling on how freakin cheap PGM is on absolutes and relativities
Of course this means nothing to market until market changes its mind. And also means I would love to see it fall lower next, closer to the other puppies in my portfolio for some rebalancing opportunity of such before the big bull breaks out of the gate.
Opinions with Extreme Prejudice
This is probably my final post before departure Thursday. I can read the HC posts tho, so pls, keep the conversation serious. You will see me in here again before Xmas. Feel free to bounce around my ideas to the directors at EGM or prior for comment so we can determine what the intentions are. I would assume by now everyone significantly involved with PGM would be looking in here and already debating the possibilities. Challenge them at the EGM. I am happy to let the new boys show us what they are made of but as someone mentioned in here, come AGM time I too will be looking for specific answers and if not considered appropriate, will be happy to join in any action to put this boat on a proper course again. Come on Spartans, time to leave Calypso's island and put our minds on rowing again. Row toward that Golden Fleece awaiting. Its ours for the taking.
