nickel up, page-7

RKS,

Hey mate, you need at the very least to be looking at the relative EVs, not just the sp. You also need to look at profitability and cashflow.

eg IGO is backed by over $1 per share cash and went down to a zero, possibly negative EV at it's lows. It also has a heap of gold potential looking better the deeper the mining recession goes, and it's nickel mine is strongly cashflow positive and profitable.

ALB is a gamble, a gamble that it will even survive, hence the volatility in the sp. If you split the IGO EV equally between the gold and the nickel the EV for the profitable nickel component is probably less than the EV for ALB. ALBs principal asset being a yet to be profitable mine in Africa, saddled with debt, where there will be no franking credits, and there are serious survival concerns. You are welcome to the uncertainties of ALB.

WSA,IGO,MCR,PAN all have strong balance sheets, ALB's is shaky at best. Perhaps you have not heard that cash is king, and that Mr Market has no interest whatsoever in weak balance sheets.

EL