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MRE - Minara Resources

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Hi All,

I have some MRE shares which I am slightly in front on at the Mo. However as I am a complete Novice I wondered if anyone can give me their views on a couple of matters

- I notice that 3 directors in the past 2 weeks have purchased a large amount of shares. What does this mean in the short term? and how long are we talking?
- Do we think they will go near their $9 high anytime soon?

I have bought some NAB & WBC shares also at low prices and my theory (and I could be totally off) is that MRE have gone up despite the Market being down, when the market goes up the banks will go up and MRE will go even higher?

Your views would be appreciated as I am starting to house hunt and not sure wether to stick and hold off purchasing or sell.

Cheers

McNovice
 
MRE is a solid play in these dour times, due to it being oversold due to the plant shutdown and 100mil spent on modification. Share price recovery ongoing but in these times all time highs are a pipe dream. Banks... well if you say you have physic abililties...who knows when this ones gonna bottom out. This economic downturn could be still talked about in a hundred years and the only thing I be doing with banks at the moment is...:) deposit:)
 
It is interesting to see MRE share values

It dipped from $5.36 on 26 May to $4.76 on 30 May about 11.3% @ in 4 days.

Earnings lowered 1% for FY 08e and 4% for FY 09e - which is not so severe considering dollar exchange rate and nickel price in world market.

Normally you would expect the directors know their business better and show the strength of their investment

Between 11 March to 12 April 08 two non executive directors have invested more than $51 millions to buy MRE between $5.87 to $5.96. Were they nut to see their investment to go down more than 20% in one month or does MRE down turn giving some opportunities ? Please see the attachment.

Did I see or read some thing wrong,

What is written in the wall considering JBM went so well and MRE just completed $100 M expansion ?

Any thoughts on nickel and MRE researchers ?
 

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Miner said:
It is interesting to see MRE share values

It dipped from $5.36 on 26 May to $4.76 on 30 May about 11.3% @ in 4 days.

Earnings lowered 1% for FY 08e and 4% for FY 09e - which is not so severe considering dollar exchange rate and nickel price in world market.

Normally you would expect the directors know their business better and show the strength of their investment

Between 11 March to 12 April 08 two non executive directors have invested more than $51 millions to buy MRE between $5.87 to $5.96. Were they nut to see their investment to go down more than 20% in one month or does MRE down turn giving some opportunities ? Please see the attachment.

Did I see or read some thing wrong,

What is written in the wall considering JBM went so well and MRE just completed $100 M expansion ?

Any thoughts on nickel and MRE researchers ?
Click to expand...

Well Miner,

If I am not mistaken MRE is the 2nd largest Nickel capacity to produce 40k tonnes per year ( Xstrata 50k tonnes with several mines compares to MRe with only one mine)


If you read Smart Investor the march 2008 edition there is an interview with Peter Jonston he advised " if Nickel price stays range between $25k and $35k per tonne over the next few years, you can make very solid returns"

They also have revamped their refinery and have a successful heal leach plant to treat low Grade Nickel, will reduce the cost unit price.

So if you believe and you believe in the big boys who have the interest in this stock:
Barclays Group 7.43%
JP Morgan 7.69%

and also what wise owl is saying in todays edition:

The wise word

Late in the week we witnessed some minor, yet notable wobbles in commodity prices, which had thus far been stand out performers throughout 2008. Commodities are renowned for their price volatility, and intraweek movements are not normally worthy of closer inspection, however some interesting themes were behind this week’s activity.

Base metals and oil were the affected markets, where prices pulled back in response to some minor grumblings from the US Dollar. We have mentioned many a time that weakness in the US Dollar was promoting higher commodity prices. With these goods priced in US Dollars, they need to rise as the greenback declines in order retain their ‘real value’ and purchasing power.

Therefore we may expect any strength in the US Dollar to have the opposite impact on commodity prices, assuming constant supply and demand. Short term confidence in the greenback was boosted by an unexpected upward revision to US GDP figures during the week. For the first quarter of 2008, US GDP growth is now estimated to have been 0.9%, up from 0.6%. Our views on the figures remain unchanged from when they were initially released – although this rate of growth is nothing spectacular in itself, it is quite solid in light of the dour economic context which the US is currently viewed.

Despite the sub prime crisis, the ensuing credit crunch, an equity market correction, falling house prices, rising inflation and unemployment – the US economy has still managed to expand over the last two quarters. A growing number of optimists are now asking whether the US is running out of time to have a recession?

How does this affect the US Dollar?

Stronger than expected growth may prompt the Federal Reserve to increase interest rates to control inflation. As we have seen with our own currency, rising interest rates can stoke currency appreciation from yield hungry investors. Whether these short term rumblings exert a prolonged impact remains to be seen, as the US Dollar has been in a firm downward trend since the start of this decade, as measured by the US Dollar Index.

However the prospect of a Dollar rally, regardless of its odds, has prompted us to take a close look at some key commodities to consider which prices could be at greatest risk in the near term. While a comprehensive base metals review is more suited for a lengthier forum such as our Pearl report, we have enough space here to consider the recent action in nickel. After a bubble in nickel prices burst mid way through last year, the price of the metal embarked on an encouraging consolidation pattern above $US25,000/t. However in recent trading the price has broken below short term support levels formed during this consolidation. The metal's long term uptrend remains intact, and we suspect that rising inventories, a supply indictor, are partly to blame for this bout of short term weakness. After building throughout the second half of last year, LME nickel inventories have now reached their highest levels since 1999! However at current levels around $22,000/t, nickel prices remain around double their 1999 levels.

In the context of the commodities bull market, this recent inventory build could represent another wave in what has been a cyclical pattern of rises and falls over recent years. Hence the increased supply and inherent price weakness could just be a short term phenomena in an ongoing bull market. The recent spate of corporate takeovers in the sector, and a strong push by the majors to increase their exposure to the metal is a testament to its longer term prospects, which are closely linked to steel production. But it is important to consider all possibilities, and we will be monitoring the nickel market with a very keen eye.
 
I bought 3k MRE today.
I had a conditional order from last week and frankly did not expect a fall greater than 10% to be hit within a day.
I will bid again at $2.80 which is where there is very good long term support.
I held MRE for many years and picked up every dividend they have ever paid until selling the stock last year.
It could be a while before MRE is over $6 again, but the company has been able to manage the production woes of Murrin Murrin to eke out over 30k tonnes a year through HPAL. And with the leaching process ramping up over the next few years MRE will remain a very low cash cost nickel company: It has no hedging, no debt, good cash reserves and a handy exploration regime.
This will be another 5 year hold - maybe more.....
 
Surly theres room for some consolidation in the Aussie Nickel industry
MRE, MCR and IGO all cashed up..falling SP's and good production
rates and reserves.

surely theres 1 to many.:dunno:
 
In reference to Miners post. I too have been looking closely at the directors purchasing a hell of a lot of shares over the previous couple of months.

Being a complete Novice- I took this as they may know something we don't or simply have a strong belief in their company.

I have tried to get some advice off a friend in reference to the directors purchasing shares in their own company with a view to making a load of money. What is the story here? He mentioned there would be a minimum time period that a director could purchase shares in their own company if there was a potential change to the company about to occur.

Can someone explain in laymans terms this for me please?

I had bought some at $7 previously, but then bought some more at $3.9 and $4.5 to bring the average price down.

Someone please advise
 
Anyone know why the SP is being hammered?

also:

CGM: Capital Raising to Accelerate Project Development

what relation does CGM have with MRE?

Since the start of June the SP is down by around 40%

Any insights and comments would be good.

Thanks
 
gfresh said:
You must have missed the whole WA gas explosion that has crippled some parts of the WA mining industry, and that has been all over the news. Minara relies on the power that has been lost, and as a result production is expected to be down 8% on the year. Could be months before full supplies are restored.

This should fill you in: http://www.theaustralian.news.com.au/story/0,25197,23850377-601,00.html
Click to expand...

To add MRE bought gas at a very high price. High cost of capital project recently finished will give bearing on bottom line. So as a cumulative effect of very high gas price, lower rate of production, depreciation cost to already lagging plant made profitability index much lower. Never mind one director bought MRE at early $5 about couple of weeks back (before the gas explosion) and think of his investment being so close to those who know all as well.:confused:

The technical strength and fundamentals are good with MRE and this is a temporary phase. It is a bUY by Bell any way.

I took an opportunity to buy MRE today at $2.88 . Hopefully first time lucky me :)
 
Miner said:
I took an opportunity to buy MRE today at $2.88 . Hopefully first time lucky me :)
Click to expand...
Well done...MRE just have to be good buying at under 2.90 IMO, hopefully i can get in
at around the same level later this week....hate it when stocks i want get to my buy
zone and im just not ready.:mad:

Just so many positives for MRE.
 
Miner said:
To add MRE bought gas at a very high price. High cost of capital project recently finished will give bearing on bottom line. So as a cumulative effect of very high gas price, lower rate of production, depreciation cost to already lagging plant made profitability index much lower. Never mind one director bought MRE at early $5 about couple of weeks back (before the gas explosion) and think of his investment being so close to those who know all as well.:confused:

The technical strength and fundamentals are good with MRE and this is a temporary phase. It is a bUY by Bell any way.

I took an opportunity to buy MRE today at $2.88 . Hopefully first time lucky me :)
Click to expand...

I tend to agree with u, i mean BHP closing their nickel mine to focus on maintenance and also to increase capacity and MRE being the 2nd biggest nickel producer in OZ just behind xtrata.

Risks i suppose is lower nickel prices, only having one mine and this WA power shortage...hmm maybe i am thinking to have 2nd thoughts...
 
Miner you really picked the bottom.;)
Good on you.

I bought in a tad too early at 3.50 but about to break even now.

Looks like the an uptrend has commenced after a few reversal patterns, need confirmation though.

I actually I hold an earlier smaller parcel i got at 5.88, so overall down a bit.

The divi's at this level are very attractive though at around 10%.
 
Chief Wigam said:
Miner you really picked the bottom.;)
Good on you.

I bought in a tad too early at 3.50 but about to break even now.

Looks like the an uptrend has commenced after a few reversal patterns, need confirmation though.

I actually I hold an earlier smaller parcel i got at 5.88, so overall down a bit.

The divi's at this level are very attractive though at around 10%.
Click to expand...


Thanks Chief W, first time lucky I was:)
I am the same person who bought GCR at 4.8 cents and ANZ at $25 and still holding them :banghead:

I honestly believe MRE will rise to its good level
Only recently the directors bought them at $5.75 before gas breakdown

Regards
 
MRE closed a little weak yesterday, Nickel price down a little tonight and the dow looking weak
and euro markets hit down around 2%...ill try and get into MRE today at under miners buy in.

see how i go? :casanova:
 
MRE got stock pick of the week by "The Inside Trader":

Each week we profile a stock that we believe as a great chance to increase in the medium term (3 - 6mths).

These stocks are chosen by using a mix or our own reseach tools including Directors activity, the Nielsen Supply/Demand Indicator and broker consensus data.

These picks are designed as a starting point for you to investigate further if you wish. Make sure you come back each week to see what we have found.



Symbol / Company
MRE / MINARA RESOURCES LIMITED
Date Picked
24-06-2008
Price When Picked
$3.520
Company Overview
We picked Minara recently and it has seen a sharp sell of due mainly to concerns about its gas supply to continue normal operations following the recent gas crisis in WA.

Directors have continued buying just recently showing a great sign of confidence. It is also currently paying an 11.3% dividend and has a low PE ratio of 6. Worth a look if you want a solid company that appears to be oversold. Keep an eye on the nickel price and the gas concerns.
Click to expand...


Must admit though, Comsec don't have it too highly rated, but the dividend return is looking very nice if it is held. Currently at around 10% fully franked.

I don't have any yet, but will see how it goes on Monday
 
I'm not sure if you guys had seen this, but I thought I would post her up - just in case... (posted 12/6/2008)

BHP Billiton has closed a nickel refinery in Western Australia for about four months while it rebuilds a smelter furnace, cutting sales by about 28,000 tonnes and sending the price of the metal soaring.

BHP said today it had to bring forward a planned rebuilding of the furnace at its Kalgoorlie nickel smelter by nearly a year because it had become unsafe to run.

The closure would halt production at its Kwinana refinery and cut global supply by almost 2%.

It estimated the shutdown of Kwinana would cut nickel sales by 25,000 tonnes in its financial year to June 2009, and by 3000 tonnes for the current year to end-June. Total sales in the year to June 2007 were about 101,000 tonnes.

Its shares fell 3.8%, or $1.64, to close at $41.80, while nickel prices jumped $US625, or 2.7%, to a high of $US23,825 a tonne.


http://business.theage.com.au/bhp-shuts-nickel-plant-price-soars-20080612-2pbo.html
Click to expand...


Now, I am getting anxious about having missed the bottom
 
adding to my previous post, here is a chart of the directors buying activity. Seems that they were certainly buying in at around the $6 mark. Shows confidence even at that SP level.
 

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I've held off buying MRE - just as well as it's dropped a bit this morning.

I guess there are still some worries:

- nickel prices decliningh
- gas supplies still an issue
- SP was in decline already, prior to the gas disruption
- single mine risks

Still, looking for a bounce would be nice, but where to find an entry point ?
 

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