I’ve spoken to a few people and I’m comfortable based on the...

I’ve spoken to a few people and I’m comfortable based on the following:
• Goldmans has always been fairly bearish on nickel.
• They have not got it right over the last couple of years.
• I spoke to a mate at one of the largest nickel producers in the world and the banks are still giving them prices at much higher than what Goldman Sachs has for 2009 and 2010 (i.e. $8.56 and $8.25). I have the figures but highly confidential but it is in the vicinity of 10% higher than Goldmans figures.
• Patersons has just changed its commodity prices and has about $13.90, $12.90 and $9.00/lb for 2009,10, and 11 respectively (much higher than Goldman) – this has always been the case anyway and Patersons have been closer to the mark than Goldmans over the last couple of years.
• What we now know is that it is probably cheaper to produce pig iron than what market commentators first though – maybe $8.50/lb not $10/lb.
• My view is that there is some price manipulation going on to eliminate this cheap form of nickel and then ultimately increase the prices due to less supply.
• One of Goldmans graphs shows MCR underperforming the nickel price since the end of 2007. Mincor has resources to prove up and has not kept in line with the market so I don’t think it is a sell in my opinion – actually it is a massive buy in my opinion! If markets don’t realize its value corporates will and it will get taken out. I also like Mirabela.
• Overall, Goldman is not the best in nickel analysis in my opinion and are quite bearish in comparison to others e.g. Patersons.