RE: The Wild Card..Cumpie Nickel DepositA few calculations can demonstrate the upside value of the Cumpie Nickel deposits.
One might reasonably assume that Xstrata would fast track the development to earn a 50 % working interest.
This would net GMI 14,000 tons of nickel production a year , worth about $370 million in annual sales.
Cumpie's high grades would suggest $10,000 per ton as a reasonable cash cost.
This translates into annual cash flows net to GMI of $210 per year or about $2 per share.
At 7.5 times annual cash flows, the valuation of GMI would be over $15 per share , should Cumpie be placed into production in this type of scenario.
Of course, Xstrata might jump to the conclusion thats its a lot cheaper to buy the whole company.
Anyway you cut the pie here, there is great upside value here.