It all adds some balance to the Ramu story - I'd hate to see another environmental mess-up in PNG so I hope they're very sure about the outcomes of dumping the tailings in Basamuk Bay. I'm more interested in seeing that the processes to produce laterite nickel are successful - probably won't find that out for another nine months on commissioning completion. I wouldn't expect HIG will elect to participate in the net operating cashflow(after interest costs) before January,2011 at the earliest but that should be at least $US20/25mil as HIG's share at today's nickel price. I think the fall in the shareprice has more to do with the likes of Baker Steel not being in the market currently as a buyer. Drilling at Nong probably delayed due to the heavy rainfall over the last two months and this could also see punters take their money elsewhere for the time being.
HIG Price at posting:
27.0¢ Sentiment: LT Buy Disclosure: Held
