article in todays afr

Dear All

There is a major article on Minara in today's AFR at page 21.

Although a good half page, the article merely repeats the views of a number of brokers without addressing some more pertinent questions relating to Minara's high costs and forward corporate strategy.

Ultimately, any business in Minara's current high cost position must increase revenue or reduce costs.

Minara has been given a temporary freebee on increasing revenue by the high nickel price (which has some time to go yet). However, it must urgently consider the cost issue before a more normalised nickel price returns and then demonstrate how this will be achieved to the market - a treatise on the rigorous financial discipline of Minara should be the first question on every shareholders list.

The company clearly is a takeover target in the general market, but I believe the current board (and management) should be actively looking to engineer some form of corporate activity to release greater value for shareholders.

A good example of this is the present friendly takeover of the Canadian Inco and Falconridge by the US based Phelps Dodge. Substantial synergistic benefits will arise from this transaction. How much more attractive would Minara look if a $100 million or so was taken out of the cost line?

So a major challenge for Mr Johnston and the new CFO Mr Pile. A successful turn around in this ship will no doubt lead to a bigger job in the offices of Glencore or Xtrata - afterall Switzerland is not exactly the worst place to live!

Regards Eos