You are right wrt MCR. Too close to the cost margins to be sure how well their southern mines even survive.
What we do know is that quite a bit of their mining is far enough down the cost curve to make a profit, and they have cash and management experienced at making a profit in much leaner times. Not sure PEM has either of these luxuries?
I find it hard to see the nickel market so well supplied that the likes of MRE and MCRs higher cost mines (except perhaps Wannaway) will actually shut up shop.
Right now you do not need to look at the pig producers for supply destruction, regular laterite and NiS producers are on the margins, not just profit margins, but cash cost margins.
EL
MCR Price at posting:
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