Hi Arthur,This stock reminds me of KZL as it moved from securing...

Hi Arthur,

This stock reminds me of KZL as it moved from securing financing to becoming a producer. The share price would rise, then pause for a period of consolidation and then move up again. I think it will be re-rated once mining actually starts.

Another similarity with KZL is I believe the swiched-on management of SMY. They are proactive - going to China, securing a deal which most small miners would only dream of - an offtake agreement with a single buyer for 100% of its output, worth $400M. Also, they received debt financing which, as someone has already pointed out, was twice their current market cap.

I think the share price will also move on announcements of drilling successes below the 500m level that could add to the existing resource base. From what I've read a drilling program is set to commence this quarter. Also, there is the possibility of successful discoveries of satellite orebodies on the company’s leases that could provide additional nickel for its plant which is currently being built. Already SMY has agreed terms with Thundelarra Exploration over the latter's prospects which could provide this additional feed.

SMY's MD has said the company was speaking to others holding nickel resources/prospects nearby and that the agreement with Thundelarra provided a precedent for future deals.

The current projections are for a 5.5 year mining operation so resource upgrades will be looked at favourably by the market.

My only problem with SMY is that I don't understand why they got this project so cheaply ($1.7M?!) from Normandy. Also many small cap miners looked at this project when Normandy put it up for sale and walked away. GBG was one such company as were two others I beleive not interested in making the purchase, not sure of their names now. Maybe someone can answer these questions for me. It could be that the orebody was perceived as too complex to mine, but I am not sure.

........and this could be a reason why the market is currently discounting SMY.

We'll see what happens.

I hold SMY