Given the depth of mineralisation, relatively low grades, worsened by the fact that mineralisation seems to be disseminated, I am wondering whether you could get a positive NPV on this. What would the Ni price have to be for this to break even, or preferably, create value?
If the value of the project is $113mill (based on EV as you indicated), and they cannot get to an NPV substantially above that, the SP will go nowhere.
They do have a nice sum of cash in the bank - I agree. Drilling out Andover will cost a lot, unless they can find mineralisation at shallower depths. Concern is that they will burn through their $37mill without substantially increasing the value of the project.