Hi Maurice, Welcome back:0) Message 17671913 and forth;0)
ZIM may be 17% over-valued on NAV basis, but under-valued by 70% relative to DJIA.
ZIM has 88,400k shares (Impala Plat owns 30%, and Aurion Gold owns 21%) outstanding, at Friday closing price of AUD 1.64, the company has a market capitalization of about US$ 117 mm.
ZIM has reserve of 163 mm oz of Pt, 114 mm oz of Pd, and 316 mm oz of Au, working out to be USD 0.72/Oz of Pt, with Pd and Au thrown in for free. For simplicity, I am assuming the Pd and Au exploitation will be used for capex, encouragement money and administrative expenses.
Further assuming a conservative mature cash extraction cost of USD 200/oz for near surface character resources, and a cautiously sustainable average price of USD 450.72/oz for the platinum, then the margin would be USD 250/oz. At a very unadventurous 40,000 oz per year extraction rate (ZIM seems to be targeting 72k oz extraction rate), the net cash of USD 10 mm net cash flow for 4,000 years would be obtainable.
If so, at 10% discount rate, then ZIM has NPV of USD 100 mm.
Chugs, Jay
mips1.net
Zimplats says will be in profits this year
Posted:06/27/2002 04:00:00 AM | © Miningweb 1997-2001
JOHANNESBURG - Zimbabwe Platinum Mines has raised the prospect it will report a positive profit for the current financial year, compared to a loss for the year ending June 2001.
AsiaPulse reported that the company was responding to a query on its share price from the Australian Stock Exchange.
The ASX asked if there was any reason to think that there may be a change in the operating profit before abnormal items and income tax so that the figure for the financial year ended June 30, 2002, would vary from the previous June 30, 2001 by more than 15 per cent.
Zimplats said in response that the company commenced mining and processing operations during the second half of the financial year ending June 2002. "As such there is an expected profit for June 2002 compared to a loss at June 2001," it said. |
