ferret's stock to watch: mincor resources nl

Ferret's Stock to Watch: MINCOR RESOURCES NL
07:29, Thursday, 20 January 2005

LOCAL NICKEL PRODUCER READY FOR A GIANT LEAP FORWARD


Sydney - Thursday - January 20: (RWE)
*************************************

OVERVIEW
********

It looks like all systems go for a great year in 2005 for Mincor
Resources as a major Australian nickel producer.

The company yesterday reported a record quarterly operating
surplus of $17.75 million for the period ended December 31, on record
quarterly revenues of $34.75 million.

The company sold 2900.5 tonnes of nickel-in-concentrate, up 80
per cent on the previous quarter.

Copper-in-concentrate sold totalled 268.3 tonnes and
cobalt-in-concentrate 55.5 tonnes.

Cash costs per pound payable nickel were $A3.91.

Directors said the quarter saw further improvements in costs and
productivities, as well as total production, as the operational changes
implemented in July continued to bear fruit.

Profit for the entire 2004 year was $11.3 million, which
indicates a dramatic improvement in the first half of 2005.

A major positive development was the start of construction of
Mincor's mine-site accommodation village, after extensive bureaucratic
and political delays.

Once operational in mid-February, the village will bring
about significant additional productivity, safety and cost benefits, the
latter conservatively estimated at $500,000 a month.

It will also greatly improve the living and working conditions
of Mincor's workforce.

Miitel & North Miitel Mines, south of Kambalda WA ,achieved an
"outstanding" performance with a new record quarterly mined tonnage of
69,974 tonnes, surpassing the previous record of 59,800 tonnes.

Nickel grades were higher than for the previous two quarters, as
the high-grade crown pillars were extracted at the 374 and 396 Levels.

Nickel grades for the March quarter are expected to be around
the 2.8 per cent level.

Development and production at Redross proceeded in line with
plan, with ore production approaching the 10,000 tonnes a month mark.

The production ramp-up will continue over the next few months,
with stoping operations (as opposed to the present strike driving on
ore) to commence in the March quarter.

Mining operations continued "satisfactorily" at Wannaway.

Extraction of the lower-grade longhole stoping blocks has now
been completed, and the operational focus has shifted to selective
extraction of remnant ore blocks.

As a result, directors say production ore tonnages will decline
but grades will rise.

SHARE PRICE MOVEMENTS
*********************

Shares of Mincor rose 2c to 61c yesterday. Rolling high for the
year has been $1.04 and low 55c. Dividend is 1.5c to yield 2.46 per cent.
On the latest earnings, payout to shareholders is likely to increase in
the first half.

Meanwhile Development of the twin declines required to access the
North Miitel ore-body continued, with a total of 332 metres of advance
achieved.

Development is close to the N14 Orebody (part of North Miitel),
and underground drilling is about to start in order to provide further
detail for mine planning purposes.

Production from North Miitel will begin in the March quarter.

The de-watering and rehabilitation of Mariners Mine proceeded
"exceptionally well" with all major technical hurdles now overcome.

The mine achieved operational status in mid-January, and ore
production will start, on schedule, before the end of January.

The mine will ramp up to full production of 15,000 to 20,000
tonnes ore per month over the next several months.

To date, the upper two levels of the N07 Orebody have been
exposed, and inspection indicates that ground conditions are
considerably better than expected.

An "unexpected bonus" was the discovery of unmined ore at the
northern and southern ends of the upper strike drive (the ends of the
lower strike drive have not yet been inspected).

The directors say this suggests the likelihood of an immediate
addition to ore reserves in these areas.

The third level of the 07 ore-body will be exposed within days,
and this process will continue over the next two months as the water
level in the decline retreats.

Access to all eight existing levels in the 07 ore-body is likely
to be achieved before the end of the March quarter.

BACKGROUND
**********

Mincor Resources NL is a well-established and profitable nickel
mining company listed on the Australian Stock Exchange.

The company's core assets are its mines and tenement holdings in
the Kambalda nickel district, where it has been in production since 2001.

Mincor currently operates three mines in the Kambalda nickel
district and is developing a fourth.

Production is expected to rise to 15,000 tonnes of nickel in
concentrate by the 2005/6 financial year.

Mincor also maintains an active and successful exploration
program, which to date has discovered over 13,000 tonnes of nickel metal
in resources.

With its strong cashflows, profitable production, dividend
payments and outstanding growth potential in nickel, Mincor represents a
quality investment in the well-proven Australian resources sector.

Mincor is an earnings-focused Kambalda nickel mining company with
long-term cashflows and strong growth potential through the exploration
and development of its Kambalda operations.

The company's objective is growth in earnings per share through
the effective management of its mining operations at Kambalda and the
exploration, acquisition and development of new operations in Kambalda
and elsewhere in Australia.

In the immediate term, Mincor's growth strategy is focused on the
operation, expansion and exploration of its core Kambalda assets.
Mincor's longer term growth strategy is developed via a strong focus on
exploration and acquisitions elsewhere in Australia.

Its very strong near term growth is due to the success of its
nickel expansion strategy, allowing it to lift production by 70 per cent
over the next two years.

ENDS

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I don't hold MCR