Ridge's directors are buying!

Rottcodd, your valuation of RDG is interesting. Shouldn't you be adding in the cash that recently been raised?

In the Sheba's Ridge Pre-Feasibility study earlier this year, Ridge quoted the following numbers for the NPV of Sheba's Ridge:-

Nickel Price (US$/lb)
4.00 4.50 5.00 5.50
NPV(5%) US$million
225 388 549 709

Nickel is currently around $5.8.

As you see the numbers here are somewhat bigger than your $15m. Which is logical because Sheba's is a much much bigger project that Blue Ridge. Whilst I appreciate your difficulty in putting a value on SR, I do not think you can use the IDC buy in 'price' as a basis for valuation. The IDC bring a lot more than money to the party and hence they are welcomed partners to this project for just the price of a BFS. With these people on board, the project becomes a lot more likely to succeed. The IDC want to make sure this project actually happens and their influence on the future of Sheba's should not be underestimated. To any other partner 26% of Sheba's Ridge would cost a lot lot more.

MJ