The seller mustn't believe your prediction of a bottom line profit of $140-180 million by next year and you can't blame them considering Albidon only produced 2000-3000 tonnes of nickel this year. The maximum production rate of 10000 tonnes a year is a long way off and by default the forecast life of mine cost of US $2-3 a pound.
The current level of nickel stocks on the LME is 136000 tonnes and will probably rise next year when new nickel mines come on line. The current nickel price of US $11 a pound should be lower next year as a result of the increased supply and that is why albidon's costs have to be lower than the recently stated US $5-6 a pound. Another poster mentioned AFR's dramatic share price gains but this has nothing to do with the uranium joint venture with ALB but the substantial coal reserves they have.
Santa didn't bring the 20c alquimista wanted and by this time next year it won't have the $140-$180 million bottom line profit you stated. ALBIDON has only just come out of administratiuo which is the human equivalent of getting off life support and to expect it to break the 100 metre world record is beyond comprehension.
Other factors to consider are the further interest rate rises expected in China next year, European debt trouble, NPI production, the rise of $A and the recent managment changes. With those in mind I'd be betting the house against Albidon making a profit of $140-180 million. Nice ramp though.....
ALB Price at posting:
13.5¢ Sentiment: None Disclosure: Held
