Nickel prices (like most base metals) have surged in the past few weeks and with it a strong surge in Mincor (MCR) – up 61% in the past fortnight Typically there is a very close correlation between PAN and MCR – with a lag of 2-3 weeks. We see potential for PAN to experience a strong surge given the underlying move in the nickel price (and gold price) as well as its main peer – MCR Technical price action on both daily and weekly timeframes is extremly positive and suggestive of a major low forming. Major divergence on weekly charts identical to that of March 2009 The company has a mkt cap of $148 million and cash of $79 million with recent acquisitions in the gold space as it widens its diversification. Costs currently run at $6.08/lb for nickel production versus a current price of $8.26/lb and the company produced a record amount of nickel in the past 12 months at just under 20,000 tonnes. The company has immense leverage to the nickel price and with gold exploration and development, has potential to be rewarded with gold prices firming as well. A breach of 60c gives way for targets into the 90c/1.10 zone..............."
They seem to have similar opinion on PAN as I do. Will it be proven right or wrong only time will tell. I am sure there are brokers with more bearish views for PAN and or other nickel companies, but the upside risk outweighs the downside from these levels IMHO.
PAN Price at posting:
58.5¢ Sentiment: ST Buy Disclosure: Held
