strong nickel prices for a decade, page-15

"Laterite production will overtake sulphide output before the end of the decade and China Raises Nickel Pig Iron Production This Year"

LZM I see both these as positives for agm.

Laterite nickel is more expensive so a baseline price will be established at laterite production cost level. This guarentees AGMs low cost operation huge profits forever.

Nickel Pig Iron is preventing rationing of nickel, filling a gap that need to be filled. Rationing would FORCE people to substitute whether they wanted to or not.

It wont last long. Ill quote a SS analyst who actually works in the industry-

" China tried the same thing with ferrochrome, by importing ore instead of the final product, but were cut off by Xstrata and a few others. It was easy for Xstrata to do it, since most of the chrome reserves in the world are in South Africa, and Xstrata was able to convince the government there that they were loosing revenue and jobs by allowing the ore to be shipped before processing"

Local business in the Philapines, New Caladonia, and Indonsesia will not tolerate export of limonite clay at the expense of production from energy, maintenance and labour intensive laterite plants. Yes we may see a short term effect when demand and supply equalise, but not for long.....