What is the best Nickel exposure?

[benwex]

With Nickel been spanked from its highs in May 07 of $52,000 per tonne, I am
of the view that Nickel will follow the copper price and will rebound similar to what Copper did at the end of last year peaking in Feb 07.

I am looking to increase my exposure to Nickel and would like some opinions to which companies people are liking how to capture as much upside in a strengthening Nickel market?

Does not have to be a producer as explorers whos small market cap can have a huge leverage affect...

I hold SMY but I want another horse in my stable....

Thanks

Benwex

 

[prawn_86]

Re: What is the best Nickel exposure??

Mincor are actually in production and have high exposure to nickel.

For an explorer RMI offers a huge potential upside, but also cashflow problems and other issues are very risky, as with any spec stock.

You must research spec stocks thoroughly and i have been burnt by them before. Also remember with explorers that their price is more affected by resource upgrades rather than the actual metal price.

 

[Rob_ee]

After missing all the recent rebounds I took the plunge today on a potentially safe bet for the following reasons

VRE is a Gold producer, well cashed up with a recent 40c placement to institutions raisng over $30 Million to fund a Nickel mine (with Mincor from memory) which will come on line within 6 months

They have the funds in place and Gold income for future expansion and have recently expanded their Bronzewing tenements

At 30c it seems like a reasonable long term hold despite all the ongoing nonsence on Wall st.

A lot cheaper than some with nothing more than holes in the ground.
I intend to hold this and hopefully add with any price appreciation

Rob

 

[whitta27]

i believe at current levels agm is good exposure.
a primary nickle focused company to be producing after christmas
they're share price is suffering from negative sentiment about the companies lack communication with shareholders as well as a lot of shareholders are angry the company delayed production which was scheduled for the next few months back to first q next year.

agm's feasability studies and projections are all based on nickle being 15000 a tonne at at these levels agm is quite profitable.

i believe nickel will consolidate over the next few months before returning to 30k to 35k levels into 2008

if this is correct agm will be well positioned to be highly profitable into 2008
my projection for agms share price is that the day it produced it will surpass the previous high of 1.18.

with nickle upgrades, a second ball mill in the pipeline, a good relationship with jinchuan(see website), a reasonable medium term outlook for ni prices, and a projected mine life of at least 10 years - agm is an excellent unhedged nickle play

on other forums rumors of takeover from zinifex are floating which could put intersting twist on things.

agm is currently trading at 61 cents - i would be probably looking for an entry in the low 50's unless the xao breaks 6200 on which i would suggest an immeadiate entry.

cheers whit

 

[springhill]

In my opinion WSA would have to be your best bet. Massive reserves, they have only scratched the surface in terms of production. By 2011 Patersons believes they will be autralias second biggest nickel producer, following in the footsteps of Jubilee. Reached a high of over $6 in the last 6 months, now sitting round the $4.30 mark after dipping to $3.90 in the correction. A good buy IMO for those wanting a less risky investment Good luck

 

[Ken]

I dont know which has the best.

But I do know of the following nickel producers

FXR, MCR, AGM.

MRE could be one also.

 

[56gsa]

With Nickel been spanked from its highs in May 07 of $52,000 per tonne, I am of the view that Nickel will follow the copper price and will rebound similar to what Copper did at the end of last year peaking in Feb 07.

I am looking to increase my exposure to Nickel and would like some opinions to which companies people are liking how to capture as much upside in a strengthening Nickel market?

Does not have to be a producer as explorers whos small market cap can have a huge leverage affect...

I hold SMY but I want another horse in my stable....

Thanks

Benwex

benwex ... did you end up buying into anything... I'm of the mind now that nickel may well have seen the worst - bounced off 11.50 USD/lb twice and now seems to be finding support around $12. Stocks seem to be topping out and stocks to consumption ratio has fallen to 7 weeks ...

so what to buy??

MRE and SMY for strong current producers that may be a bit underpriced - but for potential WSA seems to be kicking goals and has huge potential

any other nickel plays out there that can take advantage of a rising nickel price in the short-medium term??

 

[nioka]

any other nickel plays out there that can take advantage of a rising nickel price in the short-medium term??

My nickel investment, since ZFX ruined my AGM investment, has been MCR. I chose MCR because it's market cap related to it's production and reserves seemed better to me than SMY. (I might add SMY was very good for me as I was in them from early days around the mid 30c range.)
MCR are paying fully franked dividends. They are still increasing production and are successfully building up reserves.

 

[michael_selway]

I dont know which has the best.

But I do know of the following nickel producers

FXR, MCR, AGM.

MRE could be one also.

MCR, MRE, AGM, IGO, WSA, SMY

WSA - Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS -3.7 -10.0 35.5 129.0
DPS 0.0 0.0 15.8 17.7

thx

MS

 

[brerwallabi]

IGO will also be well positioned to make the most of any gains made in POG too.
I hold some expecting a bit better especially if gold has another run.