Written back when we were trading at $5.00
CONCLUSION:
ISM stock is trading at less than 1/3 of the estimated value of nickel bearing material at Inspiration Mining’s Langmuir property.
ISM should be considered a strong buy for investors seeking exposure to a wellcapitalized,Canadian nickel exploration project subject to risks described below and personal portfolio investment considerations.
INVESTMENT HIGHLIGHTS:
• Approx. $39 million cash
• Contained Ni around 352 million lbs.
• $16.50 is ISM’s estimated value of contained Ni (in-situ Ni @ USD$3/lb)
• Accelerated exploration underway
• Entire Shaw Dome area (including Langmuir) is likely to be increasingly perceived as a possible takeover target
• ISM has exposure to nickel prices and current robust global nickel demand
• ISM is a low-risk Canadian nickel exploration project (property has been attractive project for decades)
• Historic mining and Inspiration’s drill results support open-pit mining concept
• Large data flow over the next 12 months
• Existing infrastructure from nickel mining available nearby and at Langmuir
• The NI 43-101 February, 2007 Jensen report recommended continuing exploration at Langmuir.
