Nickel futures edged up 0.7% today to $17,850 per metric ton on the LME, with traders eyeing tighter supply from Indonesia’s export adjustments. Short-term technical charts show bullish momentum, supported by stronger stainless steel demand in Asia. We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (3.1%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.0%. Remember when the nickel market went haywire? The LME was just fined, 3 years later Nickel futures remain resilient above $17,700 despite broader commodity market weakness, thanks to persistent procurement from Asian stainless steel makers.