IgnacioCashmere
you often have interesting things to say, but it's really hard to read it all as one paragraph. I took the liberty to break it up for you ;) You ask a very important question. The PEA is our first estimate of the total value of the resource. During this time, junior miners often trade at 1% of the after tax, after all operating expenses value of the resource. On the very high end would be 5%. Don't get caught up with NPV, that doesn't help much. What most do is calculate how much of the estimated resource/reserve is recoverable, then use back of envelope calculations for the AISC for an open pit mine. Then, subtract taxes. That gives you your final net worth of the project, & multiply by 1-5%. This project is different. It goes beyond those figures do to speculative investment that will not end. People who ordinarily never invest in a junior miner are investing in this one, due to the enormous potential. If you look at SEDAR, you can calculate how much nickel is present, using Canada Nickel numbers. But, only 89% of that is available for recovery in the high value zone, around 60% in the low value. The actual testing for recovery shows around 50%. So 50% of 60-89% is what can actually result in sales. We have no idea really what the AISC will be, I use $3 per # as an estimate. So nickel price per pound (around $9.50) -$3.00 times the gross quantity of nickel Measured & Indicated. Next, we need to take out taxes. I use 30% for Canada miners as an estimate, could be a lot more or less in reality. That gives the total net worth available to be realized from the Crawford Project, to be divided by a future much larger fully diluted shares. For Canada Nickel, the 1-5% range of total value for share price & market cap just isn't going to work. Too many people are already keen to this mine, people who have never been burned by junior mining. They are buying & holding, focused on the distant horizon of production. Speculators, big players, can play with this moving it up & down in huge manic depressive swings. In summary, this will turn out to be one of the darlings of mining. Ordinary people will be willing to over pay when they read the story. That means it is likely to be over priced until bad news is realized, or an overall market meltdown occurs. Swing traders & speculators will be in & out of this many times over as the story reaches Joe Schmoe in Topeka. So none of the rules of thumb that apply in junior mining apply here, because this stock will be drawing upon a different group of investors than the average junior Canadian miner. If you don't know the Lassonde Curve, look it up, it is a guide map for investing in Juniors. But the Lassonde Curve won't apply here either. Because this will follow the story of the spot price of nickel, & nickel speculators as commodity traders will be landing here as well. I did the math, & I am in for a nibble, but my math shows we are over priced at $3 USD today. But that doesn't really matter, this story is too great, & it will trade & move on a life of its own, at least until a construction decision is made.