not good news for heron holders, page-16

My two cents worth.

As much as it is disappointing this reflects on the nickel laterite sector and mining globally at present in all commodities that costs of bringing product out of the ground are rising! The big plus however is that the current sulphide deposits are decreasing in output each year and there are hardly any new ones coming onstream that are of any size to cover demand for the loss of output. Bring on Laterites!

The announcement today was that it was not cost efficient not that it was not possible! Therefore what happens if a commodity dwindles but there is a requirement for Nickel at all costs in 4-5 years time. Prices of $35000+ a tonne will then potentially become the norm and those laterite mines all of a sudden may become feasable. Hence why i view the KNP as coming potentially online at the right time - 2013!.

You do not have to be a rocket scientist to work out that stainless steel use has escalated due to china and now with the Indian infrastructure program over the next 10 years hence why iron ore is must have. What alot of people seem to fail to realise is that stainless steel is used as it does not rust and is made up of a composition of iron and you guessed nickel. The chinese started using a substitute last year when nickel got to 40K and 50K a tonne but now it has become the same cost as the current nickel price and that is why nickel has stabilised at all time highs of 25K a tonne and above as they have reverted.

Personally i am not fussed about what happened today as i am looking at a 10 year hold with my heron shares and i have held for 3-4 years so far. I truly believe from research i have read that nickel laterite will become the norm in the next 3-5 years and that as a result the price of nickel will rise. The only caveat to this is that some monster sulphide finds are found and brought online in quick time.