In this market how can a stock with a dividend return of 10-12%...

In this market how can a stock with a dividend return of 10-12% be so undervalued?

Talking to a prominent managing director in the mineral exploration sector last week he couldnt understand the current valuation given the company has more nickel reserves than it could possibly handle.

Given this I would anticpate returns going forward of equal or greater value. In this market dividend returns are the key and this one has them.