Nickel starting to rise again today, page-4

So here goes a quick calculation of incremental income for HIG.
RAMU produces 34,000 tonnes of Nickel pa.
HIG is entitled to 11.3% of this, being 3842 tonnes pa
HIG will stream 23.9% of this to Cobalt27 (post completion of transaction and $15M buy-back of part of stream), retaining 76.1% or 2924 tonnes pa, which is 6.55M lbs pa.
[now the concentrate that RAMU sells won't get the full Nickel price, but I don't know whether this factor is 90% or 95% or 85% or 98% , so I will omit at present; though can add in if anyone can provide the appropriate factor.]
So an extra USD$1 in Nickel price is worth extra USD$6.55M pa to HIG.
This is about AUD$8.5M pa to top line, most of which goes entirely to bottom line as HIG has carried forward losses.
I will suggest a NPV-factor of 14 to bring this ongoing income stream to Net Present Value.

Outcome: An extra USD$1 per lb to NI price adds about AUD$120M to NPV of Highlands!! (cf current market cap of $140M)

Now I would advise reducing this a bit for a range of uncertainties, but you can see why I am more positive about HIG now (and consider it more undervalued) than when it was a ridiculous 6c a year ago.