smy to make 500m profit 2008, page-3

ok good point, i use a nickel price that is too high but you will notice that in using a high nickel price i used a low pe ration. This allows for nickle price drops eg if i used per rotion of 10 the forcast share price of smy would be $26 but i have been conservative.

Now a word on the nickel price, for nickel prices to remain the same industry players have told me a new bhp mine will have to come into production eg new mine every year with 50000 nickel tons produced each year. IT TAKES 5 YEARS TO DEVELOPE ONE MINE THAT SIZE. If BHP SIZE mine this size doesnt come into production, prices rise further. Not to mention inceased consuption due to the growth of china, africa, india, vietname, korea, and so on.

I did some calculations, if 1% of chinas population move from lower class to middle class per year, every ten years chinas consuption increases by the size of usa. (300million people) China need a 200yr plan.

Why do you think the chinese are trying to buy all Australian resources.

That would mean 10% of chinese every ten years entering middle class. I think that is realistic considering there is a shortage of skilled labour in china.