Dear NeedleHuntley admits that his sell recommendation looks...

Dear Needle

Huntley admits that his sell recommendation looks silly in the short term but in my view the medium and long term as well

The respected Huntley in this case is no doubt a very junior analyst who could not get a job with any broker and missed the run in MRE.

The assumptions used are facile - our FY06 NPAT forecast $256.7m (it is already there), average nickel price assumptions US$10.30/lb in FY06 and US$9.50/lb in FY07 (have they seen the recent prices). production is expected to be flat (30,000 tonnes!) in 2007 due to the bi-annual shutdown scheduled for late in the year (they don't even mention the heap leach project which may drop the average cost of prduction down to US$2 per pound).

Maybe this guy has been spending too much time with our embittered Macca Moron mate.

Sell if you wish, there is no requirement to hold but the report is the absolute worst case scenario not a balanced or particularly informed view.

Regards Eos