My own feeling is that at these levels Rusina is excellent value. Buyeres are aware of the continued selling by option holders who took up options at 20c and can sell at 24c ie 20% return on cash so why pay up.
The DSO limonite is being bought for the iron content which although is 50% it is hydroxide and has a reduced iron content of between 34-38% iron. But what is interesting is that this is half of very good hematite ore of 68%. Spot prices for iron ore are over $100 per ton and China is buying 1.1% Limonite at $10/lb nickel for $25 per ton ie at less than current quarter of spot iron ore. On this basis China, I think, will continue to buy "cheap iron ore Limonite" so cash flows will continue despite nickel below $10/lb.
The Saprolite is being sold at 1.7% grade nickel.
This is not a day traders share but provides excellent value for long term believers. It is also my thought that because costs of mining have risen so sharply over last two years break even levels have risen so marginal mines will struggle to survive. This affects supply for all commodities and raises the basic operating price required for mines to continue mining.
Also consideration should be given to why European nickel continues to invest in the Philippines. Obviously they are happy with the future of nickel.
