Friday, 28 September 2007

Fundamental Believes Pure Nickel Is Undervalued



Brian Tang from Fundamental Research initiated coverage on Pure Nickel (NIC: TSX – PNCKF: OTCBB) offering not only a buy rating but also a complete overview of why Fundamental believes that Pure Nickel is undervalued.

The report offers an excellent property overview with concise detail of each of Pure Nickel’s properties including ownership, history, size, infrastructure and the current state of geology and near term planned programs.

What we find to be the most interesting is that Fundamental provides a comparison chart to its mining peers demonstrating that NIC is significantly (20% - 75%) undervalued to the most of them.

Brian Tang believes that NIC is trading at a 72% discount to what it should be placing his buy rating to $1.60 as fair value for the stock. Investors should note that the evaluation could be bumped even higher anytime as the drills are turning and any success could improve the rating substantially.

Brian places emphasis on NIC’s strong management team noting that in junior mining the management team is the most important factor for success. The net rating of Pure Nickels management is 3.7 which is above average and is as high a Brian is willing to rate a management team.

The report also notes that Pure Nickel is in an excellent cash position having just completed a $27.5 million private placement.


Pure Nickel has several world class projects that are being fast tracked to determine viability. Projects like William Lake Extension are considered advanced stage with considerable historical information that has not been released to the market. The reason being is because they are part of a package which came with the recent Xstrata purchase. As mentioned in our previous newsletter, an independant evaluation and a 43-101 Technical Report is being completed by Scott Wilson Roscoe Postle Associates Inc. and all the data is confirming that this "real estate" is significant. Pure Nickel has the largest land position in the richest Nickel producing belt in the world. The investment community will soon realize that Pure Nickel is a lot further along than what their market valuation indicates. The Fundamental report supports this very clearly with their release.