"Demand for nickel improved in the first quarter of 2010, but this is mostly due to producers restocking their inventories and isn't sustainable, said Salman Partners mining analyst Raymond Goldie." - http://www.google.com/hostednews/canadianpress/article/ALeqM5j9ONJ-uvH5ZhfZy08TUsPLJJwfUg
Current projections by analysts is $8.82/lb - http://www.purchasing.com/article/455781-Analysts_raise_base_metals_price_forecasts.php.
With expenses of $4.95/lb of production, if nickel averages $8.82/lb that is still $4 profit per lb (last year it was ~$2 profit per lb). So I guess profit projection is $100m with a current market cap of ~$1.1b, so MRE will have PE of 11 (at current SP) while the sector PE is 17. I guess that makes MRE undervalued (worth ~$1.40-$1.50) if nickel price projections are accurate.
MRE Price at posting:
96.0¢ Sentiment: Buy Disclosure: Held
