Here's an interesting calculation off the 2007 AGM presentation
From slide 14, the US dollar value of Rooiport nickel and PGEs is
$2.226 billion dollars divided by 480 million Caledonia shares, the value of the existing identified resource there is $4.63 per share.
Once the 321 reef and the Merensky reef acquired from Falconbridge are drilled in Q3 2007, you can multiply that figure by 4 or possibly more.
From slide 24, the US dollar value of Nama cobalt Anomalies A and part of C is $2.734 billion dollars divided by Caledonia's 480 million share float equates to $5.69 per share at existing metal prices.
Here's why. This is the only cobalt stock going for under $1 USD. Second, it has a significant nickel and PGE deposit in South Africa. Third, it has a producing gold mine in Zimbabwe. And it has 3 diamond deposits as well in Zambia, South Africa, and Canada.
It is a mini BHP selling for under 20 cents!!
Why would you ever want to scalp it for a couple of pennies in profit? Based on the value of the proven existing deposits and Nama and Rooiport, the stock is worth $10.32 per share in current metals value.
After Nama is fully explored in 2 years, you can multiply that figure times 20 conservatively. Once Nama gets into production, it will be the biggest single primary cobalt mine in the World producing around 14,000 tons of cobalt per year. Based on Caledonia's metals prices, annual revenue per share will be around $2.55 per share with Nama at full production. That is revenues not counting gold, PGEs, or diamonds.
That calculation is for the benefit of those who are nervous about CALVF at 16 cents. I have a feeling with Friday's price action in this stock that it won't stay below 22 cents for long.
Here's the link to get to the presentation. IMO it is worth your time taking a listen and a look.
caledoniamining.com
cgn41
clearstation.etrade.com
investorshub.com |
