NKWE -NKP PGM+ GOLD who holds shares Vs Zijin

[Joshuatree]

It can't be. One est of $50 billion worth of platinum in the ground. Many stale holders will want out, divide and conquer is the tactic.

[shasta]

It can't be. One est of $50 billion worth of platinum in the ground. Many stale holders will want out, divide and conquer is the tactic.

Remember of course in situ valuations are a big no no on the ASX, as not part of the JORC guidelines. NMT got pulled up when an article stated recently they had $100 billion at the Barrambie project which is being demerged.

Looks like the 10c is a done deal, whilst not reflective of the potential shareholders believe, provides certainty and an exit.

Sovereign risk was always going to discount the SP.

[JBmurc]

Far from a done deal ---

Post from Norm on the NKWEANS facebook page ... numbers I've done on historic PM deals come around the same levels

-We all know the Z mob are trying to screw us but after some communication with our leader, I got the following calculations as a reply.
The 0.5%-2.5% will depend on many factors. The "in-ground resource" valuation will look at the classification. These will be Measured, Indicated and Inferred. The other thing to look at is "Mineable Resources" or sometimes the term used is Mineable Pit. Just as a general rule 90% of Measured resources are used in the Mineable Resource, 50% of Indicated are used in the Mineable Resources, 25% of Inferred are used in Mineable Resources.
Below is the table from NKP's Annual Report:
The measured category will likely achieve 2.5%. The Indicated is probably 1% and Inferred is 0.5%.
From the table these are the reserves in the following categories:
Measured- 2.9 + 3.33 + 3.91 = 10.14Moz
Indicated- 4.78 + 3.09 + 5.92 = 13.79Moz
Inferred- 3.17 + 4.51 + 3.6 + 7.09 + 0.52 + 0.88 = 19.77Moz
Total = 43.7Moz
Your 64.59Moz is wrong. The resource is 43.7Moz.
Platinum $USD794*1.36 = $AUD1,080. Therefore 1% = $AUD10.8
The valuation becomes:
10.14Moz*$AUD10.8*2.5 + 13.79Moz*$AUD10.8 + 19.77Moz*$AUD10.8*0.5
= $AUD273.78million + $AUD148.932million + $AUD106.758million
Total = $AUD529.47million
Nkwe 74% portion would theoretically be $AUD391.8078million
This would be AUD43.92cents per share
If you apply the "Mineable Resources" then the value does change dramatically:
273.78m*0.9 + 148.932m*0.5 + 106.758m*0.25
= $AUD246.402m + $AUD74.466m + $AUD26.6895
Total = $AUD347.5575million
Nkwe 74% portion would theoretically be $AUD257.19255million
This would be AUD28.83cents per share.
This is MUCH higher than the current offer of AUD10cents per share.
Just note that this is only ONE valuation methodology.
When it comes to valuations, to make the valuation higher or lower you can change the parameters I mentioned above. Lets say we want to make the valuation higher you can make the case for Measured Resource = 2.5% and 95% in Mineable Resource, Indicated Resource = 1.25-1.5% and 60% in Mineable Resource, Inferred Resource = 0.75% and 35% in Mineable Resource.
In the end a economic transaction is a point where the buyer meets a seller

Personal mid teens and I take my profits

[cammo]

Firmly in no sell party. Until x says ok. If legal plays ok , we will see a good result.

[JBmurc]

From NKP ann report 2016-

The Garatouw project is a premium project with a total of ~21 Moz of Merensky reef resource, which is one of the largest remaining Merensky reef resource owned outside of the major platinum mining companies.

The Merensky reef is well sought after in the industry mainly because it is much easier to process metallurgically and in the Garatouw mining area it has the added advantage that it is wide, averaging 2.2 m, making it amenable to mechanized mining methods which are much cheaper compared to the traditional conventional narrow reef orebodies which have formed the backbone of traditional major platinum mining companies.


Further, it is well known that major players are abandoning narrow reef conventional mining in favour of exploiting the wide reef mechanized mines such as the Garatouw Merensky project supporting the premium nature of the Garatouw asset.

A technical feasibility and commercial viability of extracting these mineral resources has been demonstrated by the delivered definitive feasibility study. The Garatouw Project is ready to commence mining as the critical mining regulatory authorisations such as the Mining Right and Environmental Authorisations are all in place.

[Joshuatree]

Zijn are still trying to holdup screw shareholders all the way to a 10c payout which is far below the fairvalue, re double. Great to see the good fight from the group of small shareholders when they unite against a completely unscrupulous company. Credit to Xuan Khoa Pham and others.