MMS The tone of the conference is very good, these guys CEO CFO and COO are giving very honest detailed answers the nitrate (explosives) issue is a big one, is Brazil wide and is coming to an end. South pit access is now available via a second opening, the net cash figure is quite good considering the fact that money was spent for critical mining activities, better cash burn rate than it appears (around $24 million USD nett for the first 6 months when credits, etc. are taken into account there are still many areas for further cost savings, NPI producers are approaching Mirabela for potential off take agreements because they believe the Indonesian game may be up. The price of Ni at current levels cannot be sustained, Mirabela management know this, there is a consensus for a turn in the price, it is simply a matter of when, $8.50USD a pound is being talked about, this period is probably the worst point in the cycle. There will be a 15 day shutdown of the main crusher in the 3rd and again in the 4th quarters, but a secondary crusher has been upgraded and extra ore is being stacked for that planned shutdown, so no net effect on the business. I can assure all holders, I was very impressed with the calibre and quality of management in this company, they were straight shooters, there was no attempt to make excuses or to hide from facts, they are getting on with the job of running this business to the best of their ability, see a brighter future ahead, know where they stand in relation to other producers, have an at least 21 year mine resource, have other exciting tenements nearby, now only maintaining these, but they have enormous potential, know that deeper underground, there are very good ore resources, do get a bit of PGM credits, nickel is still the main game, but Cu and Co credits are handy, too.
MBN Price at posting:
8.3¢ Sentiment: LT Buy Disclosure: Held
