75 million in the bank. no debt!, page-8

Kiwi,

I don't know what you call good fundamentals, but I don't myself call $0.24 mm profit on $121 mm of revenue good, yet it is one of the most important fundamental measures to me.

I also don't like the huge PE, don't like the backward step in shareholder funds etc.

I especially don't like the look forward one can surmise on the current pon. As I see it at best hey might get cash costs down to around $5/lb. last year they needed another $3/lb just to breakeven. I doubt they can trim expenditure down to the $2 required to just breakeven if pon stays at $7.

I cant see a chance of making any sort of profit I would call respectable on a pon less than about $9/lb, given its current improved cost structure. If I were to buy MCR for that kind of bet on the pon improving, I really think I might be better playing nickel futures.

I respect that MCR has made a dramatic change in cost structure in the past year or so, but unfortunately the pon has made a matching drop.

EL