preso upside npv 1655 per share, page-31

more signs of resources megaboom All I keep seeing is shortage of this and shortage of that cos of increasing demand and inability to supply etc etc. Below is Nickel's story on back of expected new production not likely to come on stream in time. Where have we heard that before?

And no-one has yet really focused on the plans of China and India re new car production. Whats that gonna do to Lead eg? And prob Magnesium later. And of course if hybrids increase as is likely ....... Cobalt too, u know the story.

So beats me how the hec any resources analyst worth his salt can think of anything other than a once-in-a-lifetime blow-your-mind kinda resources megacycle ahead ?

Yeah they keep talking about the US depressing as it probably will, but Ben will just keep churning out paper to ensure its an inflationery depression this time (contradiction? ....not if u remember tasting a milder version in the 70s) to keep fuelling the commodity price fire.

Anyway, we will have our smaller resources cycles within the major trend which will be UP and will last decades this time methinks. Reckon ten years from now we will be staring in awe at CMR's likely size. These guys buying now are ahead of the game IMO.


Global nickel demand strong but some relief in 2007
Tessa Kruger
'14-DEC-06 11:00'


JOHANNESBURG (Mineweb.com) --Global nickel demand is forecast to exceed 1.3 million tonnes in 2006 on the back of expansion in output capacity in China and strong support from producers in the United States, Japan and Europe.

The robust demand represents a 6.7% increase on last year despite the fact that the nickel spot price increased by 160% to US$15.6/lb since January, says Alan Heap of Citigate in a recent report on the Commodity Heap.

Stainless steel producers, who absorb two-thirds of nickel supply in the market, continue to secure short-to-medium term supplies, while price levels are at 20-year highs.

Global output of stainless steel will total 28.1 million tonnes in 2006, an increase of 14% on last year.

“While China’s ballooning output capacity expansion is the key driver of growth, it also has solid support from the traditional producers, Japan, Europe and the United States.

“Demand for steel has been strong this year, justifying a series of large price hikes in all major regions.”

Heap said that Asia’s stainless steel output and demand are likely to remain robust next year (2007), but this will be offset by weakness in the United States and Europe where stainless mill orders are already softening and stocks are rising.

“Moderate global stainless market weakness in 2007, will provide some relief for nickel’s tight market.”

Drivers of the strong nickel price are ‘frustrated’ mine supply, low stocks and “complex corporate activity” that are feeding market anxiety and high prices.

Rising costs of energy, labour and materials have caused major delays at the world’s largest projects and joint output of Goro, Ravensthorpe and Koniambo, representing 10% of supply in 2010, is at risk.

Medium-term supply now depends on second-string hopefuls such as Onca Puma, Barro Alto and the recently resurrected Ambatovy.