Snippet from FN Arena 9 Feb...

Snippet from FN Arena 9 Feb 07
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****Conditions are similarly favourable for higher prices in the platinum and palladium markets as well, the group expecting prices will continue to trend higher for at least the next couple of years.

Platinum is being boosted by the market being in deficit, which is resulting in a significant and sustained drawdown of above ground stocks and so leaving it vulnerable to supply side shocks.

On the negative side consumption in the jewellery sector fell as prices rose last year, as the Chinese in particular shifted to palladium jewellery rather than pay up for platinum. This contributed to an 8% fall in platinum use, compared to a 5% increase in palladium use.

Industry demand should remain firm though, the group noting the development of the automobile markets in both India and China and an ongoing focus on emission standards in developed countries suggesting either firm demand or an increase of up to 200,000 ounces this year.

Factoring this in, Natexis is forecasting average platinum prices this year of US$1,265 per ounce, rising to US$1,340 per ounce in 2008, while for palladium it is forecasting average prices of US$355 per ounce and US$375 per ounce respectively. These estimates compare to 2006 average prices of US$1,143 per ounce and US$320 per ounce respectively****
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Remember PGM's Greenland play is a monster Palladium resource ..... 35 mill ozs so far known, so the long term Pd price projections are of most interest to me when assessing my desired L/T possie in the Ice King. Other major gurus point to a USD 430 / oz target in 2007 and sustainable mid-longer term. Compare this with the USD 210 / oz L/T project FS number used when decision to abort was made by Galahad.

4 mill ozs Pt in the kitty aint nothing to ignore either.

Shorter term tho, POG is now in breakout "C" mode so the 6 mill ozs higher grade core within the general 11 mill ozs lower grade blanket is of IMMEDIATE interest to me in assessing how a major potential JV partner is gonna look at it in first instance.

Galahads own project numbers in late 05(from their website) cited a large volume low mining cost poss for this golden core to produce (my calcs) 600,000 ozs pa Gold / 200.000 ozs Pd over 10 years.

They're the kinda nunbers a Barrick would be interested in. I keep thinking about Barrick cos PGM already are in JV with them at Polar Bear WA ...... and MOST importantly for mine, Barrick recently signalled to its shareholders it is likely to start looking for the next big plays in "Arctic regions" cos the easy stuff has run out for them.

Also add to the mix that Barrick are being pressured to reduce / eliminate their hedge book. Another part alternative would be to bring on new production of NEW unhedged ounces.

All my opinion only but this is the kinda long range Olympian detective work i do when assessing my mid-long term emerging Olympian plays for the "stable".

Lets see what u guys can come up with. Am at 1.5% of the share cap in bits and pieces for core atm but happy to take it to 3% as the confidence increases, Aphrodite be praised. The high rating I give this baby is cos it meets ALL my ticks on reward / risk for the precious metals AND I am a disciple of coming paper burn beliefs and its consequent effects on gold and pgms. Cant find any other GOLD stock alone to come anywhere near the upside represented by seeing the golden core alone (6%) of Skaergaard reach critical mass.

IMBOOC