Good on ya EL Could not agree more about nickel. Its far more...

Good on ya EL

Could not agree more about nickel. Its far more likely to be 40000 before going back to 20000. This pig iron substitute has affected the nickel price but it appears that at current prices the NICKEL LME STOCKPILES WILL FALL BACK FROM THE 28-29000 Tonnes to the 5000 tonnes a few months ago which will see the price go back to 40000 eventually.

To think holders sold this stock down to $11 giving about a PE of 9. I was going to buy more at around 12ish but got mincor at $3 instead cause it was on a PE of 5. The next day it went to 2.60 but am happy now at 4.14.

Im confident with nickel with 10000 JBM and 20000 MCR.
I am on cloud 9 at the moment.
I am looking forward to going to the moon after cooper announces Guarme is commercial. Its encouraging to know that sensible hc posters like EL and jojo have cooper. The next 6 months will be exciting times for cooper.

HAPPY TO BE ALL IN ON NICKEL AND OIL AS I CONSIDER BHP BASICALLY NICKEL AND OIL STOCK ALTHOUGH I KNOW IT DOES WELL ON IRON ORE AND COPPER.
Good luck to all.

Extract from recently released document below-
World Bureau of Metal Statistics
January to July 2007 METALS BALANCES

IMPLICATIONS

It is apparent that even with the dreadful nickel pig iron, world consumption is still exceeding production. ATM nickel pig iron production has been reduced, hence July figures still show a defecit in production.

If consumption does increase because recent production cuts are reversed, we can expect pig nickel to start up again to satisfy this demand. Prices will need to be at least $25000us/tonne - but at that level there is a preference for conventional nickel; pig nickel would only be used because conventional nickel is not available.

China is stopping the restarting of many of the former pig nickel furnaces, so in the medium term there will be less pig nickel production each month as compared to the first 5 months of this year. If nickel demand reaches the same (or higher) levels in early 2008 compared to early 2007 then there will be a supply problem unless new sources of nickel suddenly appear.

Not many new sources due early 2008. In fact existing producers have been working at a maximum production rates for 18 months- will gear start to break, and will lower quality ores be mined as the good stuff get used up? This could mean LESS production.

Either way we can expect very good prices for 2008.