AceofKY Posted October 30, 2007 Report Share Posted October 30, 2007 Xstrata has announced a friendly takeover offer for Jubilee Mines. Subtracting out Jubilee's cash position, the offer amounts to about US$2.47/lb of in situ nickel resource. Using this metric applied to Victory Nickel's resource, and subtracting out about $300MM necessary for construction costs, yields a share price of $7.70. Victory can be purchased right now for about Cdn$0.64/share. The comparison is not apples-to-apples as Jubilee probably has better exploration potential and lower cash costs. I think, however, it demonstrates that Victory is significantly undervalued. I also like Crowflight Minerals. Link to comment Share on other sites More sharing options...
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