Niccolo's Business Unusual: Part 4

Niccolo's Business Unusual is a quest in Legend of Mana.

Premise
Niccolo has lots of goods to sell and needs to meet Watts in the Ulkan Mines for a transaction. Inside Watts's Shop, the traveling merchant introduces himself, but the dwarf tells him he's busy at the moment, so he should make it quick. The peddler of smiles swiftly looks around the place and demands payment for the 30,000 lucre worth of Laurent Silver that he left. The blacksmith is a bit taken aback as he claims he doesn't see any. Niccolo replies that he must have used it all up while working without noticing. A furious Watts accuses the rabbit of being a swindler, but the latter objects by saying he's not con man and that it he doesn't have the means to pay it off, he can work if off instead. The dwarf admits he's got no money to pay it off, to which Niccolo assures him he can pay him back by giving them some weapons. Watts replies that he's got enough money, but that he lost his wallet. He needs Gator Skin to make a new one and promises he will make a wallet the exact same size, and pay an extra 10,000 lucre for the material. The protagonist hands him the Gator Skin, but the newly made wallet is empty. Niccolo then takes some of the blacksmith's goods, saying he'll come back when he's out of ore.

Solution
Enter Geo. Find the bar area and talk to Niccolo. Have him join your party.

Enter the Ulkan Mines and go into Watts’ Workshop. Exit and re-enter the Workshop. Watts will ask for that Gator Skin that I told you to keep. Go back with a Gator Skin and give it to him. If you don’t have one, go to the Inn in Domina and talk to Miss Yuka. Re-enter the Workshop to end the Event.