my analyst had a quick look at albidon

Hey all,

My broker got his analyst to have a quick look at Albidon. Without going into too much detail, here's what he said.

Debt: It's pretty common for mining company's to have some form of debt and too have your top shareholder to whom you owe the debt to is a good position.

convertible note: Yesterday's outcome was a move in the right direction and proves that board has the interests of all shareholders.

Production: Recovery where it currently stands approx 60% is ok but Albidon needs to improve this to at least 75% or higher

Head grade of under 1% is low top Nickel producers have head grade of at least 1.5%

Revenue: Albidon seems to be building on cash revenue as recovery continues to increase. Being a nickel producer in Africe give Albidon an advantage of keeping production costs within line. Therefore revenue should continue to grow in coming months.

conclusion: Albidon has just come out of a pretty difficult period, but company seems to be back on track.Broader market seems to have a wait and see approach.While recovery seems to be improving, head grade really needs to be above 1% if the company is to be taken seriously. Price of nickel is set to average about $24000 a tonne throughout the rest of 2011, sovereign debt issues and slow growth continues to rear its ugly head any downturn could see a retraction in price of Nickel. But If price of nickel remains within forecast and revenue continues to be robust and in line, Albidon could be in for a re-rating but not anytime soon.