MCR - Mincor Resources

[doogie_goes_off]

Yes, painful but true, the price has declined and there is no fundamental downside, but Ni is the only area of production so if Ni goes down, so does the share price...if the market is being logical.

 

[oldblue]

I am a noob investor, unluckily starting my trading during this harsh market..

MCR is one of my speculative stocks which I believe has great potential and its hurting to see that good news is coming out from MCR yet the price keeps going down.

I will continue to hold and support this "what i believe" to be a great company

Nothing to do with merits or otherwise of MCR but as an " oldbull ", one of the hardest lessons to learn and remember over the last 40 odd years has been to never " fall in love " with a stock.

 

[eddyeagle]

Have been invested in MCR since 2003 when i first bought around the 40 cent mark. Since then see it fly to 5 bucks and now back to 1 dollar! Never thought i'd see it back at these levels.

It certainly is tough times at the moment. No one wants anything to do with Nickel or any resource stocks at the moment.

 

[fodder-oz]

Another good annoucement today.. When will people wake up and see this stock is so undervalued atm?


MINCOR DISCOVERS MAJOR EXTENSION TO
MIITEL NICKEL ORE SYSTEM
Burnett Shoot Intersected in Step-out Hole 600 metres Beyond Previous Drilling
Australian nickel producer Mincor Resources NL (ASX: MCR) has achieved a milestone in its aggressive Kambalda
nickel exploration strategy, today announcing the discovery of a major extension to the ore system of the highly
productive Miitel Nickel Mine – its original Kambalda nickel operation.
Mincor said today (Wednesday) that a step-out hole located nearly 600 metres beyond previous drilling had
intersected strong, wide nickel mineralisation in a channel structure interpreted to be the strike continuation of the
Burnett Shoot at North Miitel. Drill hole MDD170W1, one of a series of surface holes drilled to test for an extension
to the Burnett Shoot, intersected the following:
MDD170W1: 8.72 metres @ 2.74% nickel (true width 5.58 metres) from 751 metres down-hole, including:
5.30 metres @ 3.42% nickel (true width 3.39 metres)
Significantly, the intersection comprises a well-developed “Kambalda Profile” with a narrow zone of high-tenor
massive sulphides grading 13.15% nickel lying directly on the basal contact, overlain by matrix and then
disseminated sulphides. The presence of massive sulphides, albeit only 30cm in down-hole width, is an important
indicator of the strength of the ore system.
“This is a tremendously significant result,” said Mincor’s Managing Director, David Moore. “While we must not get
ahead of ourselves, it potentially extends the entire Miitel ore system by as much as 25%. Miitel is already the fifth
biggest ore system discovered in Kambalda to date, and if infill drilling back towards the mine confirms this
discovery, then the implications for resource and reserve extensions are profound.”
Mr Moore said that the characteristics of Miitel, including its flat plunge, vertical dip, and classic ore profile, were all
favourable for high-production, low-cost mining. “Importantly, all of these characteristics appear to be present in
the latest drilling, which further reinforces the significance of this discovery for the Company,” he said.
“Our exploration strategy is underpinned by the potential of Kambalda’s ore systems to extend well beyond their
current limits,” Mr Moore continued. “This success at Miitel reinforces the enormous upside at all of the 12 ore
systems we own in the Kambalda Nickel District.”
Drill hole MDD170W1 was one of a series of surface holes designed to discover the northward extension of the
Burnett Shoot at North Miitel. Three holes and a wedge were required to achieve the discovery, although strong
indications were present in the third hole – the parent to MDD170W1 – which intersected 0.7 metres @ 2.82%
nickel (true width 0.35 metres), some 60 metres down-dip of the intersection in MDD170W1.
A down-hole electromagnetic survey has been completed indicating strong anomalism to both the north and south.
A further wedge hole off MDD170 is currently underway, targeting an intersection point approximately 40 metres
up-dip of the intersection in MDD170W1.
The Burnett Shoot was first discovered by underground drilling at the very end of the North Miitel ore body, when it
became apparent that the basal contact that hosts the Miitel ore system had been faulted into the hanging wall.
Underground drilling beyond the fault zone subsequently achieved three ore grade intersections extending to
approximately 200 metres beyond current underground development.
However due to drilling difficulties caused by the fault zone, Mincor decided to discontinue underground drilling
from that location and instead extend a drill drive through the fault zone to a new location, from where the Burnett
Shoot can be effectively drilled out from underground. That drill drive is currently in progress.
MEDIA RELEASE
Wednesday, 8 October 2008
Page 2
In parallel with this Mincor commenced drilling on a major step-out section from surface some 800 metres beyond
the fault zone, with the aim of discovering a significant strike extension to the Burnett Shoot. The intersection in
MDD170W1 reported above is the result of that work.

 

[Sunburnt Land]

Had this sort of news been released during "the good old times", you would have seen an instant 25+% increase in share price. How times change!

Against the flow MCR did finish in the green today (only just). Have a look at MRE and you'll see how MCR would have finished at the close without this news.

 

[eddyeagle]

Money morning had an article on Nickel saying it could drop to 11,000 which is a previous high from 1995!!! All the technical inicators are negative!

 

[fodder-oz]

Well MCR is up again 10% for a rise for the 3rd day straight. Nearly back to buy price for me.

Good to see this is holding well, lets hope it gets back up to where it belongs.

 

[Sunburnt Land]

I believe the Ni price went up from $US10,000/t to $US11,500/t last night, a 15% increase, yet a decrease in MCR's share price today??? The market has a lot of repricing to do when we see confidence return.

Short term pain for long term gain.

 

[fodder-oz]

Good day so far for MCR up 17%. Quarterly report looked quite good as well.


Strong Quarterly production of 4,955 tonnes nickelin-
ore, or 4,358 tonnes nickel-in-concentrate
• Cash costs down 11% over previous quarter to
A$5.79 per pound payable nickel (US$3.59 at an
exchange rate of 0.62)
• Operational Review completed – details below
• Outstanding exploration success at Burnett Shoot –
potential for massive resource extensions to Miitel
• Potential new ore system discovered at Bluebush –
1.27 metres @ 7.75% nickel (true width) intersected
at Cameron Prospect
• High-grade massive sulphides intersected outside
Reserves at Carnilya Hill
• Group Mineral Resources lifted by 14% to all-time
record, Ore Reserves all-but replaced
• Robust $64 million Profit delivered for FY2007/08,
dividends maintained at 12 cents per share
• Quarter-end cash and receivables total $111.48
million; net working capital after creditors and
accruals totals $76.02 million

MINCOR LIFTS YEAR-END MINERAL RESOURCES BY 14% TO NEW RECORD OF
167,300 TONNES OF NICKEL – ALL-BUT REPLACES ORE RESERVES –
CONTINUES OUTSTANDING RECORD OF RESOURCE AND RESERVE GROWTH

 

[Sunburnt Land]

A very good day indeed so far. Currently trading at $0.81, up 17%. I thought the quarterly report was superb. We should see MCR continue its upward march to around the $1.00 mark over the next few weeks. Could even be a takover target at these prices.

 

[Sunburnt Land]

Definitely something brewing on the horizon for this one. Up 24.5c today to 94c, a 35% increase for the day! Due for a speeding ticket from the ASX any moment now IMO.

 

[fodder-oz]

Finally some sensible price starting to come back for this great little company. With no debt and a good discovery the market is starting to catch up with this one.

When Nickel prices start going up this will be one to double in price I reckon.

 

[oldblue]

Definitely something brewing on the horizon for this one. Up 24.5c today to 94c, a 35% increase for the day! Due for a speeding ticket from the ASX any moment now IMO.

I doubt that there's anything happening in a corporate sense but rather that MCR got badly oversold on Ni price weakness. PAN also up strongly today but I see a risk of over enthusiasm if the PoN doesn't hold up.

Disc: Holding both MCR and PAN at prices a bit north of current.

 

[doogie_goes_off]

When the nickel price jumped 15% the other day, I thought here we go - a recovery worth getting on. I looked at the strategic review figures MCR put out. I could make approximately $60M EBITA out of their figures, I was watching and then the nickel price plummeted again, losing almost the same amount it gained. This no longer made MCR cheap and I bailed on the idea. looks like the Ni price is down marginally again this evening, I'd say we could see some tome in the 65-85c range, I don't see a trend reversal without an increasing nickel price. The upshot is that I won't be back on the bandwagon for a while yet, new discoveries and increased resources included.

 

[doogie_goes_off]

Just a little information to add to my analysis on recent appreciation in MCR SP:

Nickel, Copper Fall on Inventories; Tin Rises After Mining Cuts

By Claudia Carpenter

Nov. 3 (Bloomberg) -- Nickel and copper declined on the London Metal Exchange as stockpiles expanded and demand growth from China, the world's biggest user, slowed. Tin rose.

Global copper demand will fall 0.2 percent next year, down from an earlier forecast of a 1 percent advance, because of slower economic growth in China, Credit Suisse Group analyst Jeremy Gray wrote in a report today. Copper stockpiles in warehouses monitored by the LME are at their highest since March 2004 and nickel inventories the most since May 1999.

``Until we either see some further large cuts in production or more importantly some signs of improvement on the demand side, it's too early to get bullish'' about nickel, said Adam Rowley, an analyst at Macquarie Group Ltd. in London.

Nickel for delivery in three months fell $150, or 1.2 percent, to $11,950 a metric ton as of 4:55 p.m. in London. The metal used to make stainless steel declined 24 percent last month.

 

[kirtdog]

I think this is a great company to buy into, the question is when is the best time to buy in??? Are nickel demands going to be stronger or weaker, i'm sure the apparent 0.2% decline will change.. hmm so unpredictable.. And why did it go from $5 to $1?? Seems like it was purely from panic to me...?

 

[oldblue]

I think this is a great company to buy into, the question is when is the best time to buy in??? Are nickel demands going to be stronger or weaker, i'm sure the apparent 0.2% decline will change.. hmm so unpredictable.. And why did it go from $5 to $1?? Seems like it was purely from panic to me...?

The drop in the SP is a result of the drop in the PoN, an assessment of MCR's profitability at given price levels and the general decline in equities, particularly miners.
MCR is essentially a one-metal company, apart from small quantities of Cu and Co mined as a by-product, so its SP can be expected to track the PoN very closely.
Arguably, the SP decline has been overdone although personally I would want to wait to see some evidence of an upturn. On the other hand, believers in buying straw hats in winter might already be stocking up for the " summer sales".

 

[kirtdog]

Shanghai. November 3. INTERFAX-CHINA - More than 95 percent of China's nickel pig iron producers have halted production as demand from downstream stainless steel mills has dried up, industry insiders told Interfax on Nov. 3.

yuk where is the good news?

 

[derty]

Shanghai. November 3. INTERFAX-CHINA - More than 95 percent of China's nickel pig iron producers have halted production as demand from downstream stainless steel mills has dried up, industry insiders told Interfax on Nov. 3.

yuk where is the good news?

I'd say that is good news: "More than 95 percent of China's nickel pig iron producers have halted production"

 

[kirtdog]

yeah.. i guess.. i'm just worried i guess hopefully things get better.. time will tell..................