I certainly feel there is much more steam left in this baby....

I certainly feel there is much more steam left in this baby.


Rise due to:

* Massively Undervalued
* Takeover play especially if Xtrata dont get WMR. Even if they do, expect some deal over WMR sulphide ore (due to Glencore connection) as MRE can process an additional 10,000tonnes of sulphide nickel in their refinery. Some capex would expand that to 20,000tonnes. An extra 10,000t at US16,000 a tonne = $US160,000,000 gross revenue before costs. Minara share = $US96,000,000 before costs.
* Nickel at great prices and Mar 05 production should be a record. This coupled with inventory build up in the Dec 04 quarter will see record invoicing. This will more than make-up for the loss of revenue during the shutdown.
* December invoices will be readjusted upwards as nickel price has increased in New Year i.e final profit is determined at delivery date. Hence the increase in nickel price from invoice date and delivery date = extra profits.
* If it was insto buying over the last 2 days, Glencore may step in to buy another 3% as I dont think the price will get cheaper.
* Shutdown coming up will address all production weaknesses. Hence expect even better results later this year.

Hence even though it has run had over last 2 days it wasnt too long ago when the share was trading at $2.50.