I think things are exactly as they appear. There was a $10m loss...

I think things are exactly as they appear. There was a $10m loss due to production being below expectations, which caused costs to be $13/lb rather than the projected $7/lb.

Your suggestion that Jinchaun is stealing some of the production in my opinion is unlikely. The more probable explanation is that management and the mining contractors simply performed below expectations.

Drunkensailor1 said this problem would be fixed if the grades were to improve (to projected levels).

I sold 2/3 of my holding a couple of weeks ago due to the dismal production performance and the not particularly strong nickel price. With solid production the nickel price would be no problem, but with such production uncertainty there is not enough margin of safety for me...$7/lb projected costs, $9.50/lb nickel price, $13/lb actual costs.