SMY - Sally Malay Mining

[Caliente]

Lanfranchi Project – Deacon Zone– Additional Resource Potential

From todays announcement...

Drilling to test the true thickness and extent of the newly discovered Deacon mineralised zone has commenced

• Results for first two holes in this programme are 11m at 2.25% Ni and 17.1m at 4.12% Ni

Definitely economic grades, but underground,

Just out of interest, what is the approximate relative cost difference between mining open cut nickel and underground? (i.e. twice or three times as expensive?)

 

[rederob]

Just out of interest, what is the approximate relative cost difference between mining open cut nickel and underground? (i.e. twice or three times as expensive?)

There may be none!
And, it depends on many things.
High strip ratios can determine where (at what depth) mining underground becomes cheaper than open cut.
Where narrow, high value mineral veins exist, mining underground can be immediately cheaper than an open cut option.
As "cut-off" grades become economic due to rising metal prices, what may have been an underground mine could change into an open cut mine until the new cut-off grades are mined out.

 

[jet328]

Anyone got an idea why SMY has taken a 9% hit this morning?

Cheers

 

[porkpie324]

What ever it is it's on big vol, all nickel miners are down today but SMY seems to be hit harder than others.porkpie

 

[Freeballinginawetsuit]

What ever it is it's on big vol, all nickel miners are down today but SMY seems to be hit harder than others.porkpie

What are you talking about Porkpie. SMY has shown the greatest SP strength of the midcap Nicklers in recent weeks, the only one to hit blue sky, albeit on low volumes.

A hard hit Today and Friday for SMY was overdue considering the share prices of its peers. Further weakness could be expected from SMY to bring it in line withe MCR/MRE and the like as it is overpriced, comparitively!.

I recently sold out of SMY and will follow it closely. Re-entered MRE and MCR today


Cheers.

 

[porkpie324]

What are you talking about Porkpie. SMY has shown the greatest SP strength of the midcap Nicklers in recent weeks, the only one to hit blue sky, albeit on low volumes.

Freeballer, I was talking about today (yesterday now) also down today more in percentage than its peers, still like you I have been accumulating during this selloff, also buying MCR. porkpie

 

[mick2006]

With the cash nickel price now over US $16lb, some of the junior nickel miners such as SMY, MCR are starting to look well priced once again. Picked up some SMY over the last couple of days, production rising to 12,500 tonnes this year and 18,500 which is larger than JBM forecasts. Also expecting drilling results from the Deacon exploration which produced stunning first off results with hits of 111 m at 2.9% and 91 m at 2.3%. The drilling results are expected to increase reserves at the Lanfranchi mine by at least 15000 tonnes or over $600 million at todays nickel prices.

With the upcoming release of the drill results, which could lead to a re-rating of the stock currently trading at a p/e of around 4 for 06/07 financial year so certainly not expensive.

Does anyone hold currently and what are your short term thoughts on this one?

 

[porkpie324]

Mick, I picked up some on Mon & Tues, although yesrerday I was concerned on further weakness with nickel going up overnight, today seems better, (also did the same on MCR & IGO), IGO have been sold off heavily over the last 6 weeks)
Where are they going short term, hopefully up towards the $2 :40 mark, there seems to be some new year blues with most miners at the moment. porkpie

 

[rub92me]

Does anyone hold currently and what are your short term thoughts on this one?

Short term it looks like it found support around 2.00, so I've moved my stop for part of my holdings to just below that level. So far they have delivered on their promises and are reducing the hedgebook. Longer term future also looks good so I'll continue to hold, as long as Nickel doesn't get too fickle...

 

[porkpie324]

I have noticed with SMY and other nickel miners have been reasonably well supported then around 4:15 the buy quotes seem to disappear this has been going on since the new year, although looking at the quotes now 4:30 some support has re-emerged today, is it me or anyone else noticed? porkpie

 

[porkpie324]

Closed my SMY open positions, some late yesterday rest this morning. They're looking a bit toppy today, thought they might get to 2:40, sold most at 2.34. Still a nice earner. porkpie

 

[mlennox]

wowser drill results!

• Best intersections at Deacon include 30.5m at 4.5% Ni and 32.85m at 3.88% Ni
• Two zones of massive sulphide returned high tenure nickel grades of 3.6m at 10.4% Ni and 5.05m at 9.68% Ni
• Maximum estimated true thickness of intersections is 30 metres
• Latest results provide further confidence that Deacon is a significant zone of Ni mineralisation with the potential to significantly increase the Lanfranchi nickel resource inventory

this things going to fly!

 

[Freeballinginawetsuit]

The banks initially seemed to have a bit of say in SMY's hedging and general exploration process considering the debt funding during their jump into mining and not just an exploration play.

SMY'S management seem to be growing a few balls and eating into their hedge book. Once they have cleared their debt facility and hedge book, their exploration targets will probably already have commenced mining and their tonnage rate should be considerable.

Although the current SP has enjoyed a great run, I think theirs lots more room to move on the Horizon and SMY is on its way from a fairly speculative producer to a decent midcap one with a bit of history behind it.

SMY is a lot like KZL in its early days, good management and sound exploration direction should see its market cap at least double in a year IMHO ( If Nickle holds up!)..

SMY have shown some great strength in recent weeks, in fact they've had a great year and particularly since September.
Reaching a profit target ATM if youre trading them, if youre holding them as a long term investment I cant see any reason to offload as 07 should be a bumper.

$2.40ish should now provide support but if Nickel holds up, SMY's SP certainly has room to move.

 

[rub92me]

Reaching a profit target ATM if youre trading them, if youre holding them as a long term investment I cant see any reason to offload as 07 should be a bumper.

I'm sooo tempted to take some profit now. But I won't. I've shut down my broker website until close today..

 

[Halba]

wow is all i can say. this is the best drill results i have seen for a long time.

 

[michael_selway]

wow is all i can say. this is the best drill results i have seen for a long time.

Hi

Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 12.1 35.4 54.8 58.9
DPS 0.0 0.0 0.0 0.0

not bad

thx

MS

 

[chops_a_must]

wow is all i can say. this is the best drill results i have seen for a long time.

Anyone prepared to put a value on this one?

Already have a fair amount of nickel but just interested.

 

[Freeballinginawetsuit]

Anyone prepared to put a value on this one?

Already have a fair amount of nickel but just interested.

EPS: MRE and MCR top SMY. SMY comes up trumps for future exploration and potential for increased tonnages with MCR a close second.
MRE has a long mine life and is laterite with their leach plant still uneasy in many an investors minds. IGO's EPS represents a premium to MCR and SMY and their mine life and exploration targets are inferior in my opinion, still decent earnings though.

SMY has always been my choice of the midcap Nicklers, but they have just about aproached fair value in my opinion. I was hoping for a $3.00 dollar SP before June and their just about their. My fundamental holdings in them are past CGT so will be considering selling them in the not to distant future, will still trade them though.

All of them track Nickle spot to an extent with MRE the most reliant on spot and not quite the market darling, still hard to shake the 'annaconda sting', .

SMY has always been my favorite so if you were going to hold only one Nickler, that would be my choice but they are pretty fairly valued ATM

 

[porkpie324]

Interesting comparasion Freeballer, if what you say is representive of the market, thats why SMY is tops followed by MCR with IGO lagging. porkpie

 

[Freeballinginawetsuit]

Yep it was on the cards, woosh