Canada Nickel (TSXV:CNC) just received a key boost, as its flagship Crawford Nickel Project has been officially referred to the Government of Canada’s Major Projects Office. This move sets the stage for accelerated permitting and financing, opening the door for future development.

See our latest analysis for Canada Nickel.

Canada Nickel’s flagship project news comes shortly after a major assist from Ottawa, and investors have taken notice. After months of muted trading, the stock has surged with a 37.7% share price return over the past week and an 87.2% jump over the last 90 days, recapturing much of the ground lost in previous years. Momentum appears to be rebuilding, though the stock’s total shareholder return over five years is still negative, reminding investors that long-term gains have proven elusive despite recent positive developments.

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With such strong momentum and official support, are shares of Canada Nickel still trading at a discount, or has the recent rally already priced in all the upside, leaving little room for new investors to capitalize?

Canada Nickel’s stock trades at a price-to-book ratio of 1.4x, considerably below both its direct peers and the broader Canadian Metals and Mining sector. This figure reflects the current market skepticism around near-term profitability, even after its recent price surge.

The price-to-book ratio measures how much investors are willing to pay per dollar of net assets. For a development-stage miner like Canada Nickel, this metric provides a practical yardstick for market sentiment, since the company is pre-revenue with losses projected to continue for at least the next three years.

The company’s 1.4x ratio stands in stark contrast to the industry average of 2.6x and its direct peer group at 2.8x. This highlights that, despite recent optimism, the market continues to price in significant uncertainty and execution risk. If sector multiples move higher or the company demonstrates tangible progress toward profitability, there is room for this ratio to move closer to industry norms.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 1.4x (UNDERVALUED)

However, continued losses and ongoing market skepticism around near-term profitability remain important risks that could challenge the current bullish narrative.

Find out about the key risks to this Canada Nickel narrative.

If you have a different perspective or want to dig into the details yourself, you can shape your own story about Canada Nickel in just a few minutes, and Do it your way.

A great starting point for your Canada Nickel research is our analysis highlighting 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CNC.V.

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