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MRE - Minara Resources

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Gordon Gecko

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I have been looking at pure nickel stocks and have taken a liking to MRE.

Their cash cost is $2-$2.5/lb. With nickel prices at $6.5/lb there is a good margin. the spin off of cobalt at $24/lb will reduce the cash cost significantly.

Their sp has dropped from a high of $3.5 to $2.20. I am aware of the $155mil Fluor settlement. But can't understand way it is lagging its peers.

Any other followers with any thoughts?
 
Re: MRE - Pure nickel stocks

Productivity problems - the plant has never worked as designed and until they iron out the buts it might be more of the same
 
Re: MRE - Pure nickel stocks

Exactly one year after the last post on this one and we see a BIG WHITE into new air.

I'm LONG and thinking 2.10 should be seen again in a reasonable time frame
 
I believe Fundamentally MRE is very good.. A resource stock that makes profits, has no debt, infact has $110M in cash. Well run - not issuing shares all over the place dilluting future earnings.

Nickel Market is strong, Cobalt okay.

P/E ratio of around 10. :eek:

Return on equity is excellent.

MRE may takeover some othersmaller Resource stocks??

A sound/safe investment in the resource sector, you could do alot worse than buying MRE I reckon...



Any comments? Your thoughts?

Technically it looks good as well. :D
 
I agree, I got into it on a previous dip.

:)
 
Realist said:
I believe Fundamentally MRE is very good.. A resource stock that makes profits, has no debt, infact has $110M in cash. Well run - not issuing shares all over the place dilluting future earnings.
Nickel Market is strong, Cobalt okay.
P/E ratio of around 10. :eek:
Return on equity is excellent.
MRE may takeover some othersmaller Resource stocks??
A sound/safe investment in the resource sector, you could do alot worse than buying MRE I reckon...
Any comments? Your thoughts?
Technically it looks good as well. :D
Click to expand...
MRE will do ok while nickel prices are high.
MRE's Murrin Murrin uses sulphuric acid in high-temperature, high-pressure autoclave vessels to aggressively leach nickel and cobalt from low-grade lateritic (oxidised) ores.
This doesn't mean much to the lay reader, but from an investor point of view it means that there is a "fixed cost" of production, so the greater the throughput, the greater the profits.
MRE has never come close to its targeted 40k tonnes nameplate capacity and as a result the cost of production remains much higher than desirable.
Anaconda left MRE its present facility (I think?) and many of the woes that had befallen it.
MRE is spending tens of millions on constant upgrades and improvements, and some headway has been made to improve output, but much more work is essential.
As a long term holder of this stock, I regard it as the Jana Pitman of the mining industry: Great early promise but fails to make the most crucial hurdles.
The technicals are totally irrelevant: Presently MRE is making a hell of a lot of profit so if prices are sustainable, this stock can double in price.
 
rederob said:
MRE will do ok while nickel prices are high.
MRE's Murrin Murrin uses sulphuric acid in high-temperature, high-pressure autoclave vessels to aggressively leach nickel and cobalt from low-grade lateritic (oxidised) ores.
This doesn't mean much to the lay reader, but from an investor point of view it means that there is a "fixed cost" of production, so the greater the throughput, the greater the profits.
MRE has never come close to its targeted 40k tonnes nameplate capacity and as a result the cost of production remains much higher than desirable.
Anaconda left MRE its present facility (I think?) and many of the woes that had befallen it.
MRE is spending tens of millions on constant upgrades and improvements, and some headway has been made to improve output, but much more work is essential.
As a long term holder of this stock, I regard it as the Jana Pitman of the mining industry: Great early promise but fails to make the most crucial hurdles.
The technicals are totally irrelevant: Presently MRE is making a hell of a lot of profit so if prices are sustainable, this stock can double in price.
Click to expand...

Rob, how do you think the chart is placed technically? As cannuck mentioned in the breakout thread- it's really banging on $2.70 peak tempting a breakout....

Does Minara have any hedging in place or it is lapping up the ~$28,000/t
bliss?
 
It's made about 8 attempts at $7.50 and hasn't held it. Little bit of resistance there! The odds are it'll fail again and slip back to $2.50, unless there is a significant event to push it through. ie, big news, or Nickel surges.
 
MRE has just hit 2.78 on some serious accumulation. I had just read this thread, then went back to the screen and saw am 8 cent change in less than 5 minutes.

:eek:
 
Kipp said:
Rob, how do you think the chart is placed technically? As cannuck mentioned in the breakout thread- it's really banging on $2.70 peak tempting a breakout....

Does Minara have any hedging in place or it is lapping up the ~$28,000/t
bliss?
Click to expand...
Kipp
The chart is not the bottom line!
MRE is making seriously huge profits right now as they are neither currency or production hedged.
While nickel prices stay over $20k MRE is destined to move to over $3/share and stay there.
Should MRE get closer to nameplate capacity of 40k tonnes pa (instead of presently under 30k tonnes) we would be looking at a share price well over $5.
The simple reason is due to MRE having fixed production costs. It means in theory that it costs as much to produce 30k tonnes as it would to produce 40k tonnes - in other words the extra 10,000 tonnes at $25,000/tonne would add to bottom line profits.
 
MRE is storming along. Up 10% today!!

I buoght in at $2.40 a few weeks ago and it is $3.00 now. :eek:

I only bought based on the financials, the fundamentals. It was clearly undervalued.

What is going on today? whatever it is it is good! :D
 
I too bought at 2.41. But i sold after it failed to break out the other day. :banghead:
 
Having said that and just looking at the chart, you can see that its gapped up today. Gaps always get filled, so it will come back to the 2.80 range again. Amazing thing about gaps, you look at any chart and gaps always get filled, sooner or later. I'm seriously considering a plan to just trade gaps for a while.
 
CanOz said:
Having said that and just looking at the chart, you can see that its gapped up today. Gaps always get filled, so it will come back to the 2.80 range again. Amazing thing about gaps, you look at any chart and gaps always get filled, sooner or later. I'm seriously considering a plan to just trade gaps for a while.
Click to expand...

Well you know I think charts are basically astrology, I'd like to know the fundamental reason why it shot up today before commenting.

Why a Resources company in the midst of this boom with so much money and such a low PER is so cheap is beyond me. People are 'guessing' about the future, but quite simply if MRE bosses saw no future in lateritic nickel they could just buy out about 5 Uranium and Gold Juniors outright and have spare cash to boot.

It's next dividends are coming in less than a month as well.
 
Hmm, Nickle it is up a little, and MRE is down a little to $2.90 now. That gap is filled!!
 
The price must drop to 2.80, the previous days high. Then the gap is filled. This may not happen for days or weeks even. I'll put in a price alert. I've also posted a new thread on gaps, it will be interesting to see if anyone has had success with them.
 
Realist said:
Bugger Canuck!! :banghead:

It is flying today, anyone know why? :confused:
Click to expand...
Fundamentals alone.
Despite an overnight inflow of 414 tonnes of nickel into Rotterdam, cancellations totalled 918 tonnes: Suggesting demand is continuing to outpace supply - cancelled stock is 60% of total LME.
And supply is robust this week - possibly the highest inflows into LME warehouses this year as backwardations remain in the $1500/tonne range.
With Inco on strike and no talks scheduled, nickel's tightness is set to continue into September.
It is doubtful if the exceptional inflows into LME this week can be maintained.
Furthermore, stainless steel demand has not waned in recent months with some European producers unable to satisfy near term orders: Stainless accounts for some 70% of global nickel demand.
 

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