I think the announcement has de-risked the company but at the...

I think the announcement has de-risked the company but at the same time took some of the short term excitement out of it too hence the exodus and sell down. People who bet on nickel price are now unsure of POS position and selling down. But IMO this is a bit silly.

Two possible outcomes:

1) Nickel price recovery continues: POS starts Silver Swan DSO operations to increase cashflow and goes about preparing other mines which will take about 18-24 months to get up and running. In meantime rise in Nickel price will see value of nickel tenement holdings increase substantially. Options of co-processing or outsourcing will be a lot more viable at higher prices.

2) Nickel recovery stalls and retreats: POS has $2M + Option $500K + unknown RnD refund. If Option taken, has $6M per annum to keep afloat and maintains nickel assets, continues readiness for eventual nickel price recovery. Potential LT lithium assets also.