The nickel spot price and AUD have been going up aggressively for the past few weeks, while MCR has been held down artificially. I believe this is because Deutsche Bank valued MCR at 1.86 during August (see http://www.mincor.com.au/images/mincor-47--iexah.pdf). That valuation was based on a nickel price of $6.50/lb, but the current spot price of nickel is nearing $10.50/lb. It also assumes the AUD is $0.73/USD, but the current price is around $0.93/USD.
Based on this, MCR is extremely undervalued.
This is especially since Deutsche Bank previously valued MCR at $2.80 based on "a nickel price of US$9/lb, and AUDUSD of 0.74" (http://www.mincor.com.au/images/mincor-47--phosu.pdf).
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