Interesting, thanks.The target is a bit sobering. Minus tax,...

Interesting, thanks.

The target is a bit sobering. Minus tax, minus deprecation...

Their prediction of $0.05 per share dividends ($58m) though seems pessimistic. Notice that even with $0.05 dividends in '11 and '12, there is a further surplus of cash of ~$70m PA.

Paying $0.10 dividends is doable still allowing for small growth in cash reserves.

Their assumption is $10.50 nickel price for 2011. This is the main thing to think about. Higher or lower will make a big difference.



And now my nickel market research -

American Stainless Steel imports is up over the past 12 months. report

China steel product production up 15% YoY 2009-2010.

Arivals vs Departures from LME looks bearish.

Global steel output is at it's peak - Source 2.

Chinese house prices are looking way too high.