Quick and dirty numbers
NOT market cap is approximately $500m
Deposit size from data we have right now is about 5 million tonnes at an in the ground value of approximately $700 per tonne for a total in the ground value on the deposit at todays metal prices of $3.5 billion. I've included holes 17, 18 and 27 in this calculation. Othe people will have slightly different calculations but they will not be significantly different if they plotted up the sections and did the resource calculation then added a bit of upside speculation.
The market will attribute 10 to 15% of the in ground value to the company. That equates to a value of $350 to $525 million in market cap for NOT. Add in their Windfall asset of maybe $50 million and you have a market cap of between $400 and $575m (very rough numbers here). The point is, that is the way big fund managers like Sprott will do their calculations. We may not agree with it but that is the way they do it.
So in my opinion the stock is fairly priced right now and needs something different to move it to the next level.
13 members recommend this.
Mr. Parisotto and Mr. Hamilton address the Noront investment community.
