EL, I compared the 5 year chart of LME Stock to LME spot price and the price rises about a month before it shows up on the stock chart. So the price may well be rising because of a fall in stock.
ALB expects to have the cost price down to $5/lb soon and $4 by March next year, so as long as the spot price stays where it is they will be in profit soon and at 900,000tpa that will soon start to add up. But I don't see Nickel stopping at $5. With all the mine closures I think there has been considerable overshoot (isn't there always?) and would expect to see the price rise to $7 or $8 next week. That would put ALB in a sound footing - they will be able to raise funds, the SP will rise, and things will return to sanity once more.
Let's not forget that the Nickel price was $9.50/lb just three month ago. Things haven't changed that radically in the last three months, but the number of Nickel mines going into care are and maintenance has been radical, several announcing three month closures. Three months would give ALB a great head start.
Robert
ALB Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
