announcement - undervalued?, page-2

High Tech,

Firstly, Nickel Australia has 85,000,004 shares on issue. The difference is 16 mill shares restricted until the end of this year. So, the calculation needs to be re-done.

Secondly, on issue the market factored in a premium over cash of about 50%.

Thirdly, by 23 Dec 2003 when they reached 37.5 cents, the market reckoned they were worth well over 200% of cash backing.

Now the market reckons they are worth roughly equal to cash backing.

So, there is now no premium for management ability, exploration prospects, exploration done, intellectual property etc.

Therefore, they are either undervalued (if the above items have value) or the market has declared them a "dog".