FRC is reporting that their fair value estimation for NAM remains at $.49 per share and yet several things have changed since their september report?

There has been no new resource estimate but the new report raises the PGM resource from 2.77 MOZ to 3.08MOZ. Did they make a reporting mistake the first time?

Shares are now trading higher and the market cap is higher.

The enterprise value, which is a function of market cap, has risen from $1.88 to $8.62 according to the new report.

The market cap and the EV for an exploration company like NAM is IMHO irrelevant because they are both a function or shareholder sentiment which is based on speculation.

NAM is assuming that the RV deposit has value for a larger mining company. In fact the value of the RV claims is a function of the amount and quality of the various minerals in the ground, their accessability and the metallurgical properties of the ore.

So the actual value of the RV claims is based on how a prospective buyer or partner would evaluate it's value not what current shareholder sentiment is.

What we know so far is that the ore contains payable metals, the ore is amenable to well known smelting and refining methods, the deposit is open pitable and large enough to have economic value for mining, there are refineries close by and good roads onto the site.

We have reliable studies that show that their is sufficient ore in the ground to be economically viable and of interest to a reputable and capable miner.

So the actual value of the RV deposit is best calculated as a function of the value of the metals in the ground reduced by a factor which accounts for the costs of extracting the ore and processing it. Of course there are other considerations that make up the appropriate  factor that any purchaser would use to appropriately assess the economic  value. Such a factor would not be dissimilar to factors used to evaluate other PGM mineral deposits in the past.

IMHO the FRC estimates, although interesting, are unrealisticly low and not based on assumptions that reflect the true value of the deposit to a prospective buyer.

The FRC estimates may bear some relationship to what the market  and current investors   are prepared to risk at the moment , by way of maret cap, but this has little to do with the true value of the deposit.

IMHO NAM management and hopefully NAM shareholders would quickly reject an offer of $.49 per share for an asset that is easily worth twice that amount as it sits in the ground. And that is based on a 2012 study that is grossly out of date and obviously not reflective of the drill results over the last 5 years.

Frankly I find the FRC report an insult to NAM and irresponsible. Why did they bother to release a revised report when all they did was update the current share price and market cap? They didn't even bother to reflect the new numbers that they reported in their calculation of value.