yes took my breath away. then I crunched the numbers and I could...

yes took my breath away. then I crunched the numbers and I could be wrong but the effect of the Ni price rising 10% has the impact of turning a $6m loss into a $27m profit pa.

yes the debt is high but the ability to service it is there.

If you work out the debt coupon net of the interest earned on cash, they are in the can for $27m interest net. So its cash flow neutral with a 10% increase in Ni.

if Ni doesnt improve, not such a great punt as cash on hand will need to finace the net interest difference.

Whats significant is the stocks of world Ni stocks is high at present but most of the producers out there are under water and this will sort itself out of the next few months.

in my opinion Morningstar has call this a buy is correct with high risk.

if you cant handle the risk you should be elsewhere.

Flux