very bullish next target 7, page-51

Weak today because headline loss was $35 mill versus forecast loss of $28mill. However this was because of the transfer of the offtake to BHP which meant 3 months nickel ore stockpiled. This is now being sold to BHP at some $3 higher per pound resulting in a likely windfall of some $20mill in CY accounts 2009/10, meaning the coming year profit will be higher.
As management have said as long as the nickel price stays over $8 they will be more profitable this year ready to ramp up in 2011. Huntleys have earnings of 46c for 2011 on an $8 nickel price.
Interesting to note that the nickel price is again approaching $9 yet the nickel stocks like MCR and WSA continue to fall. No value is given for potential exploration success, with 2 sites for WSA identified as the next possible Quoll. It is disappointing to see some analysts set sell recommendations on last year figures, they should look forward not back as they do in the UK.