have we seen the bottom , page-8

Hi El,

This is the time of the year that those who want the Nickel price to fall , can flex their muscles and push prices down by staying away from the market for as long as possible. But eventually they will have to go back to the market to build up their depleted stocks.

I do not believe that we will see the Nickel price under the US13 for a long time, unless the world economy is going toward a recession.

Most Nickel miners have been saying that they believe that the nickel price will stay stong for some years to come, I am sure they must have done their homework.

The Chines have been going around the world securen off-take agreements for Nickel, they must have be expecting to be in need for lots on Nickel in the future.

Companies like Norilsk paid a premium for Lionore not long ago , could they have been so wrong???

So I still believe that prices will settle around the US$16 mark or so towards the end of the year.

Looking at Mincor at say Nickel at US$12 /lb they will still bring in some good money because of the increas of production.

I can see with a low PE of 7 and Nickel at US$12 a share price north of A$5 attached to MCR and that is without taking the cash in consideration.


Even with Nickel at US$12 Mincor is still a beauty

with a production of around the 19000 t/pa

EPS= 72 cts per share

PE of say 7 = $5.04 per share!!!!!

And that is without counting the cash.

So even the market is not realising it yet , Mincor is still a buy today.

Not only because the increased production but also because of the resource and reserve increases we can expect to be announced in the next couple of months.

For those with steel nerves, any more downwards pressure on the shareprice could be a great opportunity to top up once again.
JUst remember Mincor has with their large increase in production and resources created a great buffer against lower Nickel prices.

jojo