chomp, page-26

re: chomp.orders purged early:mook Domum

A couple of months ago I thought that zinc would follow the path of nickel given the ongoing demand / supply scenario. The price of nickle producers in particular has gone nuts - I remember MRE and IGO both when they were around $1.50 (not that long ago). If nickel is tight for another year of two how high could they go?

So I bought up big in CBH, ZFX and recently a few PEM. I already held AIMO from when they were around 2c.

I see zinc stockpiles hitting a critical juncture before Christmas. Zinc stocks have began moving in the last 3 weeks or so in anticipation. The question for AIM is are they going to be in production in a period of high prices. Also if they do hedge (and mayby it's a good idea to a degree given the volatility of the commodity markets) what price could they get? At $2 a pound in a couple of months surely they could get an attractive hedging rate in comparison to the .82c a pound originally forecast in the BFS.

I'm not so fussed about offtake agreements because smelters are crying out for stock.

What they really need is what KZL, CBH and PEM have -a major zinc company (Toho ZINC, Korea Zinc) holding 20% of the company.

I think in 2 years time AIM could easily be worth at least 50c but that's just me!

As a comparison I think AGM is the nickle equivalent of AIM. Good project due to start up in mid 2007. I watch closely as it might provide a preview of what AIM might do.

Any references to CBH would have been because I thought it was an absolute (and still is) a no brainer!




Mookie.