The Australian Financial Review | 06 Jul 2007 | Companies and...

The Australian Financial Review | 06 Jul 2007 | Companies and Markets
Takeover speculation is gathering over nickel producer Sally Malay Mining after its shares bounced back strongly.
In the month after a production downgrade in May, the shares fell below $4 as the nickel price dropped more than 25 per cent from record levels.
Sally Malay rose 31¢ to $4.74 yesterday, and is up 60¢ so far this week.
The only news the company has released this week was drilling results from the Copernicus project, which one analyst said was negligible to its valuation.
There was talk that more drilling results were imminent from the Lanfranchi venture in Western Australia, amid speculation of a takeover.
Sally Malay has an open register and significant production coming online. Despite being a fairly high-cost producer, it is considered one of the more likely nickel targets, behind Jubilee Mines and Minara Resources.
Managing director Peter Harold said a recent four-day North American roadshow was very positive and could explain the increased buying.