Jojo,
You might forget nickel has always been relatively very expensive, and in most engineering circles you've always tried to avoid, ie substitute. But for many things you just need high nickel alloys, anf for some things eg what was previously whiteware, we just want it (I think it is a symptom of called affluenzia?). Sure every time the relative price goes up a few more minor applications fall off the cart, but nickel around usd 14 has not gone up that much versus other metals. Probably more meaningful to use pon vs say a capital goods index, rather than the shrinking greenback. Even vs the Euro I can't see pon currently that bad, but certainly was expensive at 24 usd/lb.
Not entirely a recent convert to nickel, but you are basically correct. Had had IGO since 2004 and dabbled in a couple of others. By mid 06 I felt comfortable (and successful with IGO), and could see no immediate downside in the previously low margin producers, eg MCR and LIM, and some of the developers (but JBM and IGO sps had downside then).
Iron is different. For a start a lot about company credibility. I saw the big magnetite projects heralded in Perth through the 90's and all came to nought. Even now who is producing from magnetite deposits? Haematite projects still require indepth research imo, quite unlike nickel producers were with their established production and cost data. With iron you are still paying for bluesky, and much more CAPEX and OPEX uncertainty imo. I might yet get in at some stage, but right now lots too hot.
EL
JBM
jubilee mines nl
