Hi Jethro, i did post my fair value calculation on RMI a few...

Hi Jethro, i did post my fair value calculation on RMI a few days ago. If you have a look, the value should be $0.05 without any news compounding in it but assuming they got the 120MT of Ni, then the value should be between $0.50 to $1. Assuming the mine would last 20 years and the 1.2% Ni is constant throughout the mine area. This is the working again.

120M tonnes X 1.2% (Ni) X 25,000 (price of nickle per ton) = $36000M.
$36000/440M shares issued = $80 per share.
$80/20 year mine life = $4 p.a

Now assuming the cost and other stuff works out to be $3 to $3.50 p.a, we should get $0.50 to $1..... This formula works out for SDL if you have a look at their company. They got a placement of $0.50 and its share is trading at $0.40. Try it and you will see my working are quite accurate.