chibrown, Presumably you meant low yield mine, not high yield?! The fact they have decided to expand to 9Mtpa tells me they realise there is not so much to be gained by thecnical improvements and rather have turned their attention to increasing throughput. Your $6 to $12 pound margins assume nickel prices of $15/lb - $22+. That is more than a 50% jump from where prices are now. Whilst nickel price is volatile, only the most extreme optimist would be betting on such an increase happening and being sustained given the current outlook. Further, the sales contracts MBN has are only till the end of 2014. I am not sure they will be in a position to get the same contracts again, never mind improved terms. The ore is very low grade so any deviation in grade, recovery, etc has a large impact. Thus if the deviation is in the right direction it will be great news for MBN, however, like most new mines, the actual results don't always match the mine plan, and it is usually on the downside.
MBN Price at posting:
$1.01 Sentiment: None Disclosure: Not Held
