MCR held well, and I am sure in no small part to the production increase being factored in over the past few weeks. Finally had to capitulate to sector sentiment though.
Hard to know what happens short term, however I am expecting more pain, both with the pon overcorrecting low (much as Zn and Cu did), and possibly more pain on share prices.
One good thing which I doubt is factored in, is that along with the new production, there is the inference of dropping some of the more marginal existing mining. Along with moving to a lower hedging %, at higher price I am therefore expecting MCRs 2008 profit and cashflow to be pretty robust, but as Dolphin has said we will will need the Sept QR at least to bring this to the markets attention.
A mkt cap of $840mm for 16500 tpa of nickel for a proven performer still looks reasonable imo. A better ratio than some not yet in production.
EL
MCR Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
