Context for any time these videos say ‘WA is expensive!’
Some production there is competitive even at today’s prices & of course that a potential mine- ARL- is very competitive… in fact projected to come in cheaper than Mr. Selby’s own pet project at FPX.
Our projections come in at USD$5,700~ a tonne over the entire life of mine while FPX states $8,000 a pricing.
Lots of good info for the casual/newer reader anyway so here we are:
https://m.youtube.com/watch?v=rxXCkSNGeEM&pp=ygUNY3J1eCBpbnZlc3Rvcg%3D%3DNet shorts ( bets that prices will fall ), on the nickel sector have reduced by more than 50% in the past month or so. The sector is still short as a whole but while we remain below 20% above the recent low ( low of $7.10~ a pound has become $8.10~ a pound ), that’s no shock.
That tells me many of those holding short positions are looking to slowly buy their way out/hoping that the ups and downs will let them out before it goes past that 20% up on the low ( $8.40~ a pound ).
Key point? They have to buy nickel contracts to cover those short bets at some stage, whether they want to or not.
It won’t be a surprise to see the number of shorts continue to shrink as we move closer to & beyond that $8.40~ range.
To Indonesia? Don’t be surprised to learn in the future that the current ‘government driven’ reduction in supply growth is in fact due to a steadily declining ability to increase production. It could well be that the Indo government is trying to maintain confidence in the overall direction of their industry, especially as they’ve just had a new government installed. ‘Business as usual, the money will keep flowing!’ is a way easier story to sell than ‘You might have ruined your local environment for a quick buck!’
Why? Because the damage to the environment/the quality of life for many small villages etc has happened so quickly, not allowing the average citizen to really benefit.
Oh well. The overall trend hasn’t changed. Slower supply growth overall, more expensive operations slowing/closing, steady demand growth. All three legs of the stool are steady.
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