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Nickel - the metal for 2007?


Freeballing, yes, covered back already.

Recently our team recommended clients to sell Nickel Call option $52,000 Apr 07, premium for 1 lot of nickel is USD4,350, so yield is 16% in just 2 weeks time. Expiration of option is on 4 Apr 07.
 
Currently nickel seems to be trading at the peak of an uptrend channel, so it is likely that it will face some resistance moving upwards this month.

Current price is trading at $49500/ $50000, you can sell a call option, strike $60,000, May 07 (expires in 2 May 07). Premium received is USD250/ton, so selling 1 contract, the premium received is USD250 x 6 = USD1500. Yield is 5.88%/mth.

http://basemetal-trading.blogspot.com/2007/04/selling-nickel-call-option.html
 
Looks like there is still plenty of Ni Sulphides around - just need to be found!!! A coy in Canada (looking for diamonds no less) claims to have found a decent deposit... Voisey's bay was also found by a company looking for diamonds and now is one of the premier NiSu mines in the world... So for those people who say that there is no NiSu remaining... well - it's there just have to find it... Cause i am very cynical about any of these countless minnows spruiking Laterite deposits ever getting off the ground when it is probably far more productive (with a higher probablility of long-term success) to look for the sulphides - look at WSA, Mirabella, et al - all relatively recent Sulphide discoveries listed on the asx...

http://www.canada.com/nationalpost/...85148-64b9-4138-86ae-5c264aef0d1f&k=83915&p=2
 
This report from Wilsons and the comments from Chip Goodyear I found interesting.

 
From The Times
April 6, 2007


Nickel prices reached $50,000 (£25,400) per tonne for the first time yesterday, having risen by 50 per cent in three months.

Prices for the metal, which is used to prevent corrosion in steel, have soared because of a shortage of supplies and rising demand from China and India.

On the London Metal Exchange (LME), nickel for three-month delivery reached $50,000 in early trading as traders worried over stockpile shortages. The price fell back to $49,700 by the close of trading, still up 2.3 per cent on the previous day. The price of nickel was $33,000 at the start of January and just $13,000 in January 2006. The demand has emptied warehouses with stocks falling to below 5,000 tonnes from almost 30,000 a year ago.

Commodities analysts at Barclays Capital said yesterday: “The low level of stocks highlights the market’s vulnerability to supply disruptions which have plagued the nickel market and been a key factor behind the sustained rally in price.”

Although demand for steel and nickel is set to ease in the US this year, most analysts believe that strong growth in Asia will continue to put pressure on supply. Dresdner Kleinwort said: “The market has recognised that US demand might decrease due to a slower pace of economic activity but that demand from emerging economies, especially China, will more than offset any possible shortfall from the US.”

Xstrata, which bought Canadian nickel producer LionOre for £2 billion last week, and Russia’s Norilsk are the main beneficiaries from this surge in prices. Lead also hit a record yesterday of $2,025 per tonne on the LME. Copper was $7,465, its highest level since last October.
 
imajica
It was actually the "3 month" forward price that tipped the scales over $50k.
The spot price got there a few weeks ago.
As much as I like the high price (as a holder of nickel equities), it's getting closer to a technical blow-off and I would not be jumping on to the bandwagon at these crazy levels.
Although, buying back in around $40k may not be the extreme danger it was just a month ago.
Those that sold MRE down so heavily on Thursday will wonder if it was the right move - but taking a profit seldom is when a share is clearly overbought.
 
Monthly nickel prices presently (at around $22) are averaging over 3 times the annual 2005 price of $6.69 and twice the average of 2006 ($11.01).
All the price dips are being bought into.
There is no "spare" nickel sloshing around.
Oz Nickel producers will overshoot analyst estimates yet again.
This is a long term trend that keeps catching the market by surprise.
Sure uranium shares are going through the roof, but my feet are comfortably on the ground, and I can let the market roll on without having too many concerns.
 
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.


Chops,

ALB is worth a look as well.

1st entry hurdle at $2.10ish........ a bit of patience should enable accumalation in this one near term IMO.
Similar production timeframe as AGM.

Sound fundamentally/low cost production and a decent sulphide resource with scope for further upgrades.

Gate offtake with Jinchuan for life of mine.

LOL ........another Miner out of Colin street in West Perth, I'm sure they all do lunch together and compare thier success at mining shareholders....... on thier hip pockets!
 
would want to bounce from here..........watch your fingers and toes.

around 10 percent fall to next support
 

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This should come as no surprise (from the Australian),


cheers
 
Posco is yet to give a proper name to the new product that substitutes chromium for nickel
Bahahahahaha!

I'll have a cutlery set with a side of cancer please.
 
 
hey guys just wondering who the next nickel producers will be in australia?

i have so far

AGM



thanks in advance
 
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
 
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

I've done a fair bit of work on VRE. It's all in that thread. Although primarily a gold miner (awaiting ann of first gold pour), they have a JV with MCR and have said they will be mining nickel by the end of the year. All the press releases and the broker report is there. Currently sitting on its NPV, and consolidating awaiting BFS (any day) and ann of first gold pour.

Cheers,
Chops
 
Metals - LME inventory data (Friday)

Copper down 1,775 tonnes at 142,275 tonnes
Nickel up 252 tonnes at 4,698 tonnes
Zinc up 400 tonnes at 87,100 tonnes
 
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