Freeballinginawetsuit said:Well the Hedge funds have speculated it so far that a fall from 50k makes January's levels of 35k ish look cheap....a fact the Chinese will have to lump and probably will at those levels....who would have thought hey!.
Brend I seem to recall you recommending to your clients to short at 37k, hope they covered.
Anyway you look at it, Nickle producers are in an enviable position mid term, I wouldn't count on HPAL'S coming online smoothly.
Mineral exploration expenditure in Australia for 2006 increased 199% since 2003. Strong growth occurred for expenditure in iron ore (431%), coal (235%), uranium (907%) and the base metals (317%) being comprised of: copper (514%), silver-lead-zinc (339%) and nickel-cobalt (210%).
Expenditure for gold exploration increased just 115%, for mineral sands (119%) and for diamonds (101%). These latter increases are significant, but pale in comparison with the growth in expenditure on the other commodities. With acceleration of expenditure and activity on the scale. It should be no surprise that the industry is experiencing shortages in manpower and materials.
BHP’s CEO Chip Goodyear said prices of copper, nickel and other metals will remain high for several decades as demand from China and India climbs. “I'm excited about what we'll see over the next several decades as 2.5 billion people in China and India and other parts of the developing world enter the world economy,'” Goodyear said this week in Santiago. “Is China and India the next reason for a multi-decade increase in commodity prices? We're positive about that.'”
Who are the key Nickel companies on Aust Stock Exchange?
IGO rather.
SMY is there as well isn't it?
AGM and VRE will both be producers by the end of this year as well.
IGO rather.
SMY is there as well isn't it?
AGM and VRE will both be producers by the end of this year as well.
Posco's no-nickel steel
Kevin Andrusiak
April 27, 2007
GIANT South Korean steelmaker Posco has joined a growing band against the surge in nickel prices, and has introduced its own nickel-free stainless steel product.
Posco is yet to give a proper name to the new product that substitutes chromium for nickel, labelling it as POS445NF. It claims it will sell 120,000 tonnes next year, about 6 per cent of its stainless steel sales.
Posco is the world's fourth-biggest steelmaker with stainless sales of about 2 million tonnes a year.
The new product, in development for two years, has the same rust resistance as that of 304 stainless steel, which accounts for about 70 per cent of Posco stainless steel sales and more than 50 per cent of global production.
Posco says the price for POS445NF would be more than 50 per cent cheaper than 304.
Stainless steel usually has a minimum of 8 per cent nickel.
Bahahahahaha!Posco is yet to give a proper name to the new product that substitutes chromium for nickel
This article I found while looking at Norilsk (inquisitive about their 20% holding in Lionores Black Swan W.A.) suggests that higher production costs will narrow profit margins.Though the bottom line where the company (Norilsk) plans to outlay a billion/year and other articles say the demand is insatiable.The `in between` player (hedge fund man) always likes his cut. Hope this helps with longer term optimism.
I made this comment back in January and well I can`t believe it , they WANT ALL of Lionore.If only I had enough funds to spread around.
"Norilsk Nickel will offer to purchase all of the issued and outstanding common shares of LionOre at a price of Cdn$21.50 in cash for each LionOre common share. Assuming that all common shares are tendered into the offer, total cash consideration of approximately Cdn$5.3 billion will be offered.
The cash offer represents a premium of approximately 22.9% over the closing price of Cdn$17.49 per LionOre common share on the Toronto Stock Exchange on March 23, 2007, the last trading day prior to the announcement of the intention of Xstrata Canada Acquisition Corp. (“Xstrata”), a wholly-owned subsidiary of Xstrata plc, to make an offer for the LionOre common shares. The Offer also represents a premium of approximately 16.2% over the Cdn$18.50 price per LionOre common share offered by Xstrata".
or i would even appreciate some people letting me know about their fav nickel companies and WHY? ie resource size etc.
i am looking for a good nickel company that is close to production, and sp has not gone through the roof yet.
cheers guys
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