Why Invest In Junior Mining Stocks: Part 2 [View article]
Murmuru:
Regarding the price jump of PNIKF.PK, the upward movement I believe you are referring to was following Prophecy Platinum's split from Prophecy Coal. The movement wasn't as much predicated by PGM hype, rather the untying of the coal assets. John Lee discussed this when he split the companies. PGM was already strong and the coal markets were in the middle of their arduous downward march. This jump was more akin to a stabilization. The reason that this asset appears so undervalued is because the market is severely discounting the inferred assets. Over 90% of the PGM is still inferred rather than indicated and with their drilling projects this year that should begin to shift. This will drive the value forward, the continued derisking of the underlying asset.
I would also like to draw your attention to Prophecy Coal, another junior miner run by the same management team as Prophecy Platinum. The value prospective is even more interesting than Prophecy Platinum in my opinion. As mentioned in the article the company owns over 40% of Prophecy Platinum's shares so you will recognize the upside of that company, but you also get their 1.5 Billion tonnes of coal reserves in Mongolia. Which, given current market caps, the market is only valuing at about $4M. I have written up the company previously
Why Invest In Junior Mining Stocks: Part 2 [View article]
Regarding the price jump of PNIKF.PK, the upward movement I believe you are referring to was following Prophecy Platinum's split from Prophecy Coal. The movement wasn't as much predicated by PGM hype, rather the untying of the coal assets. John Lee discussed this when he split the companies. PGM was already strong and the coal markets were in the middle of their arduous downward march. This jump was more akin to a stabilization. The reason that this asset appears so undervalued is because the market is severely discounting the inferred assets. Over 90% of the PGM is still inferred rather than indicated and with their drilling projects this year that should begin to shift. This will drive the value forward, the continued derisking of the underlying asset.
I would also like to draw your attention to Prophecy Coal, another junior miner run by the same management team as Prophecy Platinum. The value prospective is even more interesting than Prophecy Platinum in my opinion. As mentioned in the article the company owns over 40% of Prophecy Platinum's shares so you will recognize the upside of that company, but you also get their 1.5 Billion tonnes of coal reserves in Mongolia. Which, given current market caps, the market is only valuing at about $4M. I have written up the company previously
http://bit.ly/J0O06t