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| | Corporate Profile: NMC Resource Corp
Publisher: Kaiser Research Online
Author: Copyright 2011 John A kaiser
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NMC Resource Corp (NRC-V)
| NMC Resource Corp was created on February 26, 2010 when a CPC called Venture One Capital Corp completed an RTO of the Moland molybdenum project in South Korea and changed its name to NMC. A 5:1 rollback was conducted in November 2010. The flagship asset is a high grade molydenite mineralized skarn deposit discovered in 1966 and intermittently mined from 1973-1988. The Moland project was acquired in November 2004 by the Korean mining conglomerate Dong Won Corp which spun off NMC Inc as a separate entity in April 2008 to facilitate development of a 1,000 tpd capacity underground mining and milling-flotation operation whose molyndenite concentrate is sold to a Korean roaster. NMC has invested $22 million through a combination of loans and equity financing from the Dong Won parent and Korean private equity funds, which remain the dominant shareholders through common and convertible preferred stock. In late 2011 DH Kim was promoted to CEO, and in January 2012 Paul Matysek invested $500,000 and joined the board. Commercial production at Moland was achieved during Q2 of 2010 at a rate of 800 tpd with 89% recovery of a head grade at 0.2% Mo. Rhenium values have been reported in the 0.023-0.3 ppm range. The QP, Bob Middleton, has developed a hypothesis for a larger system at depth whose confirmation through deep exploratory drilling would justify scaling the mining operation larger and boost market confidence that Moland is a long term sustainable cash cow that represents a leveraged bet on the future price of molybdic oxide. Moland is currently the only operating molybdenum mine in Korea. Underground drilling is underway to expand the resource. The short term goal is to use cash flow to reduce existing project debt which stood at $8.5 million at the start of 2012. An updated resource in 2011 showed a 14 year mine life at 1,000 tpd. If higher molybdic oxide prices prevail NMC has the option to double capacity within a 12 month timeframe at an extra cost of $30 million. NMC's mandate is to use its status as a profitable molybdenum producer controlled by a deep-pocketed Korean mining conglomerate as a stepping-stone to farm into other advanced specialty metals projects or acquire them outright. In November 2014 the company received a takeover offer, essentially a privatization, from controlling shareholder Dong Won Corp to take the company private at $0.20 per share. |
Key to Understanding IPV Charts and Spec Value Hunter Tables
| An IPV Chart is a graphical presentation of a Spec Value Hunter table that has been constructed according to the Rational Speculation Model developed by John Kaiser. The IPV Chart allows speculators to identify which projects offer poor, fair or good speculative value in both absolute and relative terms. The speculative value depends on the project stage, the project's implied value as calculated by the company's fully diluted capitalization, stock price and net project interest, and the dream target deemed appropriate for the project. A dream target is what a project would be worth in discounted cash flow terms once in production. |
| Green background indicates the dream target judged appropriate for this play by John Kaiser - otherwise unranked. |
Poor Speculative Value -   |
Fair Speculative Value -  |
Good Speculative Value -   |
| Note: narrow arrows indicate IPV is outside the fair value channel but within 25% of the fair value limits |
| Click on the company name to view the company profile, the project name to view project details. |
| Click on the project icon if its background is shaded to get the IPV Chart for that company. |
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