re: tsylana -the pick of the nickel stocks? Thanks chinkiat....

re: tsylana -the pick of the nickel stocks? Thanks chinkiat.

Allegiance certainly appears to be the best relative value on a pure $ per pound basis. However, is it not true Allegiance needs to raise $8-9 million to develop an exploration decline which, even if successful, will not lead to ore production before 2005?

Some might argue that relative value analysis would suggest that the better value is with the producers such as Jubilee. What are your thoughts?

Also, on the prospects for the price of nickel, the Deputy chief executive of the world's biggest nickel producer, Russia's Norilsk Nickel, was quaoted as saying that the surging nickel price was being driven by speculation rather than any significant fundamental deficit in supply. He also said he expected the price to increase by only 10% to the middle of next year. This contradicts an article I read recently in the AFR (I think) which claimed China's surging demand for stainless steel would create such a deficit in nickel that the price is likely to double or even better over the coming years. What are your thoughts on this?