Hi ELObviously the problem of being a one commodity producer....

Hi EL

Obviously the problem of being a one commodity producer. Now that the nickel run is over, IGO is back to reality. Dreams of becoming a multi billion dollar multi-commodity producer have largely evaporated in the short to medium term. Tropicana is the potential saviour, but will be some years away. What will fill the gap? Not sure.

Nickel was never going to stay at +$40k/t, let alone +$50k/t (note - thanks to the speculators/hegde funds . An expert in the field I saw present last week suggested we would see nickel in the range of $20k/t to $23k/t over the next three to five years, with bluesky only to $25k/t. Whilst the high-grade sulphide deposits are running out, there is a sheet load of laterite nickel around. Laterites are expected to fill the supply gap moving forward. IGO now really has to prove its worth as a mine manager - keep costs low, hit production targets, suprise on the upside. Just like all the Kambalda guys really. Their timing to buy the mines could not have been better but the "boom" times for nickel are behind us.

I was lucky that I sold IGO just short of its peak. Its a lesson I will carry through into my iron ore holdings over the next few years. The other lesson is to not fall in love with a stock. Sometimes hard not to!