This article was written before the PFS and probably posted...

This article was written before the PFS and probably posted here, but I thought a reminder would be good. Lots of talk about laterite cost vs sulphide but there's more to it than that.

http://forexstocknews.com/2018/03/top-5-nickel-miners-to-consider-before-the-nickel-boom/

Ardea Resources [ASX:ARL] (OTCPK:ARRRF) – Price = AUD 1.55, USD 1.24
Ardea Resources owns 100% of the Kalgoorlie Nickel (laterite) Project (KNP) in Western Australia, just 150kms from Kalgoorlie.
Ardea’s total nickel and cobalt resource is 5.46 million tonnes (contained nickel (grade 0.7%), and 405,000 tonnes contained cobalt (grade 0.05%). Based on the table (“Nickel projects by reserves and resources”) above Ardea (via Heron’s ex nickel resource) has the world’s third largest nickel resource, and the developed world’s largest cobalt resource, albeit at lower grades.

Whilst the nickel is a laterite ore making CapEx and Opex more expensive, the ore is in soft, iron-rich clay so easy digging and usually within 50m of surface suitable for open-pit mining with a low strip ratio.
Valuation is currently very attractive with a current market cap of AUD137m (~USD105m) due to the early stage, with a PFS due out soon in Q1 2018.
My preliminary model has an unrisked NPV8% of AU$1.172b, thereby suggesting plenty of upside if the company progresses successfully to production. My very preliminary price valuation from my DCF model (risked) is AU$5.03 (3.25x upside), and my earnings model price target for end 2022 is AU$7.03 (4.5 x upside).