News: Initiation Report: Sky’s the limit for nickel developer, page-2

Some great analysis from The Sophisticated Investor. For me the key take outs were:

• Valuation of $0.20 (4Mtpa operation) to $0.24 (staged production option)
• Location is not a deal-breaker. Even when transport costs are increased by 50%, operational costs still only reach A$5/lb (allowing for copper credit), compared to Nickel price of almost A$7/lb (well shy of its historical average, so plenty of upside - especially when you include credits for other by-products). Mike Young also notes that Nickel prices are at all time lows, and by the time we're producing we should be benefitting from rising prices.
• Any major success from the current or future exploration programmes could see Cassini’s share price quickly surpass their 20-24c valuation.
• On their website, The Sophisticated Investor highlights the fact that with a long mine-life, low operating costs and a stable jurisdiction, Cassini could be an attractive takeover target. I really hope this is not the case, as the upside potential is massive and I want to be part of it!
• On the website are a bunch of other excellent videos, featuring further analysis and interviews with Cassini management. If you watch nothing else, watch the Mike Young video. 5 minutes. This guy is a genuine, under-promise, over-deliver guy. And you can sense the excitement he has for this company, and the opportunity it presents. He seems very very confident that this company will be making a lot of money and the the future is very bright.

To quote the title of the article, the sky’s the limit for this nickel developer!