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Nickel


theflasherman

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Hi Nickel stock followers.

 

MCR and WMR up today on the back of rising nickel prices.

 

A little odd that JBM not following suit. There looks to be a major seller in the stock who has not finished. It seems range bound between 4.00 and 4.30.

 

I did sell out of JBM at $4.15 after buying in the temporary lull of $3.60 a month ago. But it does puzzle me why the price is acting the way it is.

 

I have done some quick numbers on JBM and i estimate that they will make between A$75-85million this year in profit. This is substantially up on last year and with a market capitalisation of A$513 million they are on a forward P/E of 6.0 to 6.8. This appears to be reasonable given Cosmos low cost operation.

 

Perhaps mine life is really weighing on JBM. There appears to be real hope of upgrading reserves and they have a number of exploration projects on the go. Emu Creek was meant to have given us some results by now and they look long overdue.

 

MCR is likely to benefit from the high prices from January as I understand their forward contracts start to roll off.

 

Current explorers will probably miss the best of the current nickel price rise IMO.

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Morning session in London reveals that Nickel prices screamed through US$15k a tonne. This rise is frightening. The Aussie dollar has come back slightly. If workers at Falconbridge in Canada goes on strike next month nickel could move into unchartered territory.

 

This should be Nickel stocks have another good day.

 

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Hi toilet

 

Care to give us a run down? There are 3 new mining floats over the last few days. Nickel Australia (NKL), North Star (NST) and Cougar Metals (CGM). All rely on exploration success and could well miss the peaking Nickel prices.

 

Speaking of the price, the LME Nickel price dropped in the afternoon session but still closed well up on the day at US$14,612 a tonne.

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too lazy to

so copy and paste for u

 

PRINCIPAL ACTIVITY

Nickel Australia Limited (NKL) is a minerals exploration company focused on the

exploration for nickel in the Eastern Goldfields of Western Australia. NKL was

formed for the purposes of acquiring 100% of the nickel rights from Croesus

Mining NL (CRS). In consideration, NKL issued CRS with 15 million shares and

granted CRS a 1% royalty over the value of nickel concentrate mined. In

addition, NKL has agreed to spend a minimum of $3.15m on exploration at the

Norseman, Davyhurst and Beete Projects prior to electing to relinquish the

tenements back to Croesus.

 

NORSEMAN (100% OF THE NICKEL RIGHTS): The Norseman Project is located near the

town of Norseman in Western Australia, 190km south of Kalgoorlie. Previous

drilling has intersected mineralisation including 14m @ 1.16% Ni, 50m @ 0.87% Ni

and 10m @ 1.03% Ni.

 

DAVYHURST (100% OF THE NICKEL RIGHTS): The Davyhurst Project is located 170km

NNW of Kalgoorlie. Previous exploration has intersected 5m @ 0.39% Ni. Soil

sampling identified anomalies ranging up to 900ppm Ni and 120ppm Cu.

 

BEETE (100% OF THE NICKEL RIGHTS): The Beete Project is located 60km south of

Norseman. Previous drilling has intersected nickel intersections including 28m @

0.13% Ni and 16m @ 0.2% Ni, 101ppm Cu and 180ppm Zn.

 

SPLINTER (EARNING 85%): The Splinter Project is located 120km northeast of

Esperence in Western Australia and is prospective for copper and gold. Regional

sampling identified a 2.5ppb gold and copper anomaly over an 8.5km x 5.5km area,

with samples of over 10ppb Au also recorded.

 

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FYI - Morning session LME for 23 Dec 2003

 

LONDON, Dec 23 (Reuters) - London Metal Exchange (LME) nickel

futures hogged the limelight at Tuesday's midsession, chalking up a fresh 14-1/2 year high as

speculative funds piled back in to buy in thin seasonal trading conditions, traders and analysts

said.

"The (base metal) market is not ready to completely lie down yet. The trade is pretty quiet

now but the funds are still there and their appetite is still there," one senior LME trader said.

"Some markets are outright jumpy -- this is not a seasonal lull by any stretch of the imagination...All

the positive factors as still there and I'm expecting the markets to push higher before the end

of the year," he added.

Benchmark three-months nickel <MNI3> soared to $15,400 a tonne in Tuesday's second morning

rings, up sharply from $14,995 at Monday evening's kerb close. Prices later hit a new 14-1/4

year high at $15,625 in the morning kerb session.

Ingrid Sternby, base metals analyst at Barclays Capital, said: "Most commodities are well

placed for an extremely strong start to 2004."

Copper <MCU3> moved up to $2,225 from $2,219 at Monday evening's kerb close.

"After a bit of profit taking, there's been some buying today and I think on copper we should

consolidate now between $2,200/10 and $2,230/50," the LME trader said.

Aluminium <MAL3> slipped $5 to $1,565. Prices later rebounded in the kerb to around $1,587,

underpinned by strength in other metals.

In market news, the LME said on Monday its investigation into the aluminium market had uncovered

evidence of a form of collusion and misconduct by non-LME members, and that it had referred findings

to Britain's Financial Services Authority (FSA).

Zinc <MZN3> gained $6 to $995, while tin <MSN3> showed further flashes of strength after

the previous week's sharp rally, surging to $6,265 from $6,155.

Prices reached a new 7-1/2 year high at $6,370 on Thursday.

Lead <MPB3> gained $9 to $687.

 

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