There must be more than one way of valuing mining stocks with in...

There must be more than one way of valuing mining stocks with in ground resources. The outlook for Nickel looks difficult as per recent Bloomberg report below

Yet Sirius Resources has a market cap of around $800 million.

Perhaps the market takes a longer term view of these scenarios.

Nickel supplies will exceed demand by 52 percent more than forecast last month as consumption outside of China is weak and new projects are adding production, according to Macquarie Group Ltd. (MQG)
The surplus will be 82,000 metric tons this year, compared with the previous estimate of 54,000 tons, Jim Lennon, an analyst at the bank in London, said in a report e-mailed today. It was 97,000 tons last year, he said. Cuts to production are needed to rebalance the market, he said.
“From a fundamental perspective, there is no reason for optimism about the nickel price in 2013 unless there are large- scale production cuts,” Lennon said. “Apart from Chinese nickel pig iron, producers in Australia and Canada are also suffering from a high exchange rate against the U.S. dollar, and further cuts here seem likely.”
Nickel for delivery in three months fell 10 percent this year on the London Metal Exchange and yesterday fell to the lowest price since July 2009. LME-monitored stockpiles of the metal mostly used to make stainless steel increased to 172,296 tons, the highest on record, exchange data showed today.