New Age Metals Inc. (CVE: NAM) Company Overview
Symbol(s): CVE: NAM, OTC: NMTLF
Industry: Palladium Mining
With the spot palladium price breaking above $2500/oz on Friday, Jan 17, 2020, a year to date gain of 34%, I am excited to present you with another amazing opportunity in the palladium mining sector which looks to be the most undervalued compared to other palladium stocks I am currently watching.
New Age Metals Inc. is a Mineral Exploration company focused on the exploration and development of North America’s palladium-rich primary Platinum Group Metals (PGM) deposit, the River Valley PGM Project located in the Sudbury region of northern Ontario. The Company also has seven exceptionally strong lithium (Li) and rare element projects in Manitoba waiting to be capitalized on. The company’s River Valley PGM project’s resources are worth US$8 billion dollars at the metals prices on January 17, 2020. The company’s current enterprise value per AuEq ounce is US$0.49 which is incredibly cheap compared to other mining companies (see valuations tab for calculations).
While palladium is a critical metal for gasoline and diesel automobiles being used in catalytic converters designed to reduce harmful emissions for engines, lithium is the most well-known battery metal on the market and a critical component in electric vehicles. The company is well-diversified by being involved in both palladium and lithium exploration and development.
The company has 161.88 million fully diluted shares including 96.88 million outstanding shares. As of January 17, 2020, the company has a market cap of $7.16 million and trading at 7.5 cents.
New Age Metals River Valley PGM Project
River Valley PGM Project is 100% owned by New Age Metals (NAM). It is located in the Dana and Pardo townships of Northern Ontario, approximately 60km east of Sudbury, Ontario. The project is road accessible in Canada’s premier Ni-Cu-PGM mining and smelting district which boasts perfect infrastructure and community support for mining activities.
The project is under two Mining Leases which cover an approximate area of 12,000 acres of Surface and Mining Rights. The Mining Leases cover all of the 2012 NI 43-101 mineral resources of the River Valley PGM Project. The 2019 NI 43-101 covers both the River Valley PGM Project and the River Valley Extension. The company has 2.9 million ounces of palladium equivalent resources in the measured & indicated category and 1.1 million ounces in the inferred category. Out of the total resources of 4 million ounces, the company has 2.18 million ounces of palladium in addition to platinum, gold, rhodium, copper, nickel, and cobalt as shown in the table below:
Preliminary Economic Assessment (PEA) Highlights:
The project’s first economic study, a PEA is nearing completion and its initial results were released on June 27, 2019.
- Life of mine (LOM) of 14 years, with 6 million tonnes annually of potential process plant feed at an average grade of 0.88 g/t Palladium Equivalent (PdEq) and process recovery rate of 80%, resulting in an annual average payable Pd production of 119,000 ounces
- LOM average operating cash cost of $971 per ounce (US$709/oz) and all-in sustaining cash cost of $972 per ounce (US$709/oz) at a 1.37 CDN: USD exchange rate.
- Pre-tax NPV (5%): $262M, After-tax NPV (5%): $139 M at US$1,200/oz palladium
New Age Metals Lithium Projects
New Age Metals is the largest mineral claim holder in the prolific, Winnipeg River – Cat Lake Pegmatite Field. All of the claims are held by Lithium Canada Development, a 100% owned Lithium Division of New Age Metals. They presently have seven Lithium Projects in the region which are situated along the strike of the Tanco Pegmatite and the claims encompass several pegmatite groups. The projects are located 140 kilometers northeast of Winnipeg, Manitoba:
- Three of the projects are considered drill-ready. Lithium One, Lithium Two, and Lithman West.
- Active exploration of the claim holdings is ongoing.
- New Age Metals has signed an exploration agreement with the Sagkeeng First Nation and will be work in partnership with them on their traditional ground.
In close proximity to the historical Tanco mine, New Age already has already received a drilling permit from the provincial government for its sizeable Lithium Two deposit which has a historical non-NI 43-101 compliant resource of 544,460 tonnes grading 1.4% Li2O.
Disclosure: I am/we are long CVE: NAM.
I wrote this article myself, I am not an investment adviser and it expresses my personal opinions. I am not receiving compensation for it and do not have any business relationship with any company whose stock is mentioned in this article.
I am never making any investment advice or recommendation to buy or sell specific securities. Investors in financial assets must do so at their own responsibility and with due caution as they involve a significant degree of risk. Before investing in financial assets, investors should do their own research and consult a professional investment advisor.
New Age Metals Inc. (CVE: NAM) Share Price Chart
New Age Metals Inc. (CVE: NAM) Corporate PresentationNew-Age-Metals-Corporate-Presentation
New Age Metals Inc. (CVE: NAM) Valuation by Resources
The company’s River Valley PGM project’s resources are worth US$8 billion dollars or 5.11 gold equivalent ounces at today’s (January 17, 2020) metals prices. The company’s enterprise value per AuEq ounce is US$0.49 which is incredibly cheap compared to other mining companies.
Gold Equivalent Resources: 5.11 million ounce
Market Capitalization: $7.157
Enterprize Value: $3.191M
Enterprize Value Per AuEq Ounce: US$0.49 ($0.624 CAD)