nickel stockpiles, page-13

Damman,

I see the implications of what you are saying. What troubles me is firstly like you say that it has taken so long, but more importantly what you are saying goes way beyond what they indicated in the "production outlook" section of the Dec QR.

Pretty wasteful of future metal resources to go on mining for full cash recovery (including sustaining capital), let alone for little more than the headline cash costs as they have. [Note I disregard hedging in this respect, as selling into the hedge is lost opportunity gain].

Must say I was really put off PAN many months back when I saw a quote from Peter Harold which from memery was to the effect that we have plenty of cash, therefore we will just burn through that if need be, before considering closing anything.

I trust Moore at MCR to be much more prudent, and cost conscious than that (although imo they too have been tardy in accepting the situation).

LME inventories and pon are indicating more closures/cutbacks are required. Until that changes I will only be holding IGO and WSA, and in both cases patience may also be required.

EL