effect of nickel price?, page-4

MCR compared to it's peers has a large amount of hedging.

A falling Nickel price has less effect on MCR than unhedged producers.

Huntleys' Recommendation

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Last Analyst Update: 05/09/2005
Recommendation Accumulate
Last Price 0.72
Market Cap 141
Sector Materials


Rating Outlook
MCR owns four operating mines in the Kambalda region of Western Australia. The Mittel mine is the prime contributor to production followed by Mariners and Redross while Wannaway has entered a remnant mining phase. All ore is toll-treated at BHP Billiton Nickel West's -previously WMC's- Kambalda operations. Concentrate is sold to BHP via a long-term offtake agreement. MCR has limited nickel hedging, is leveraged to nickel prices and subject to operational swings. The company is suitable for risk tolerant investors seeking exposure to nickel exploration and development upside.

Cheers.