oversold at the moment?

Now its $4 mil market cap, I don't know where the SP will go but you have to weigh up the risks and benefits and rationally decide from this

The risks I see at present
- broader economy/nickel demand
- mining tax
- cash in bank
- granting of mining licence

Project finance seems OK because MFC is funding development and Proto have no debt. Proto has recently bought MFC shares. We should get the answer to the mining licence soon unless there has been some barrier to this.

Weigh these up against the benefits, summarised below before any resource reestimation and are a worst case scenario.

(Borrowed from Narasimha's post):

Material recovery

Available nickel @.008% = 8Kg/Tonne of ore
Recoverable nickel @.75% = 6Kg/Tonne of ore
Ore available 8.5 Million Tonnes = 51,000 Tonnes

Assumptions for production cost

Royalty & Sundry expenses = $0.17/Kg $1/Tonne
Drilling & blasting = $1.00/Kg $6/Tonne
Excavation = $0.58/Kg $3.5/Tonne
Transportation to smelter = $1.25/Kg $7.5/Tonne
$3.00/Kg $18.00/Tonne
Cost of ore at smelter = $3.00/Kg
Smelting cost = $3.00/Kg
handling at smelter = $0.50/Kg
Overheads and contingency = $0.50/Kg
Handling and shipping = $1.00/Kg
Total Cost at Sales Time = $8.00/Kg

Assumptions for Sale Price

Price of nickel US$ 7/lb = US$ 15.4/Kg
@ Conversion rate of 0.9058 = AU$ 17.0/Kg
Profit = AU$ 9.0/Kg
MFC share @50% = AU$ 4.5/Kg = AU$ 4500/Tonne
PRW share @50% = AU$ 4.5/Kg = AU$ 4500/Tonne

Assuming 10 years of mine life Yr Tonnes Profit/Tonne Value in Millions
1 4000 4500 18
2 5000 4500 22.5
3 6000 4500 27
4 6000 4500 27
5 6000 4500 27
6 6000 4500 27
7 6000 4500 27
8 4000 4500 18
9 4000 4500 18
10 4000 4500 18

51,000 Tonnes $230 Millions


* No credits for cobalt,iron and other metals is considered

In weighing up this, one would have to say it is way oversold at the moment due to tax loss selling, unless there is some other factor at play I haven't considered.