twiggy and singleton: "new nickel force", page-2

Great read.....love the bit below with the price forecast of $1.11, I would be happy with $1.10, no need to be greedy LOL!!!

Peer Group Comparison

A peer group comparison with Western Australian based nickel producers currently produces an average market valuation of 4.79 x EBITA. This includes:

- Panoramic Resources (1.87 x EBITDA),
- Western Areas (8.78 x EBITDA) and
- Mincor Resources (EBITDA x 3.72)

On this basis, there is a projected valuation of $453.73M, or $1.11 per Poseidon Nickel share (unadjusted for mine funding) at an annualised production rate of 22M/lb in 2015.

EBITDA will rise much higher when annualised production hits 35M/lb in the third year of mining operations and may be further supported by nickel pricing that is forecast to reach $13.00/lb in the medium term.

Poseidon Nickel currently has a resource base of 144,000 tonnes of nickel that has expanded over the last 6 years at an average pace of 26% per year. This exceeds the average annualised growth rate reported by its peer group.

The Company reports a rolling 3 year discovery cost of $0.10/lb within a peer group that historically averaged $0.24/lb and clearly demonstrates the high prospectivity within the Windarra Project area.

Poseidon Nickel represents a rare opportunity to be an owner of the only ‘new’ nickel sulphide producer ready to meet supply shortfalls in 2014/2015. This is at a valuation that does not take into account the near term production and growing cash flow metrics.