With the latest resource updates for Projects 2 and 3, I thought I'd take a stab at how much PTM's share of the WBJV is worth, and how that should translate to PTM's share price.

Project 1:

From the Sep. 7, 2007 release, PTM's 37% share of Project 1 comes to 1 3.17M oz of PGMs. From the prill sprits and grades in the release, we can calculate that resource there attributable to PTM is 2.02M oz of Pt, 0.842M oz of Pd, 0.217M oz of Rh and 0.099M oz of Au, measured, indicated and inferred.

Project 2:

From the Apr 22, 2008 release: PTM's ~18.5% share of Project 2 comes to 1.66Moz of PGMs. A little arithmetic, and we can calculate that PTM's share of that project contains a total measured, indicated and inferred resource of 1.038M oz Pt, 0.456M oz Pd, 0.123M oz Rh and 0.043M oz Au.

Project 3:

From the Apr. 25, 2008 release: PTM's 37% share of Project 3 totals 0.7Moz of PGMs containing 0.44M oz Pt, 0.19M oz Pd, 0.05M oz Rh, and 0.02M oz Au, measured, indicated and inferred.

Total

Add all three together, and PTM's 43-101 compliant, attributable resource in the WBJV (not including War Springs) totals 116M tonnes of ore containing 3.5M oz Pt, 1.49M oz Pd, 0.4M oz Rh and 0.16M oz Au. At today's metal prices, that's a gross metal value (GMV) of US$10.99B. Divide that by the ~62M shares PTM has fully diluted, and you get ~US$177/share.

From there, I factor in that it will cost ~US$50/tonne to mine the ore, and throw in a 35 year mine life (pulled from Wesizwe's release, and assuming mining in all three projects will be nearly coincidental). After applying a 7% discount rate (there was a positive PFS, after all), my rough calculation gives me an NPV for PTM of ~$7.90/share. After the (I assume positive) BFS is released, when mining the resource will be a near certainty, I apply a 5% discount rate and arrive at ~$15.30/share.

That's just a back-of-the-envelope technique, but I think it shows that PTM is a screaming buy at ~$2.40/share - ridiculously undervalued at the moment.

JMHO

D.