At first look I would agree with you, but at a second look I would not...
And why not??
Because if we have an oversupply now, then the chinese do not need to open another mine, if anything it will cost them more money, mining it themselves with the cost of mining outdoing the sale price.
Better to let other miners carry that burden and make a loss or a very small profit not worth the mining risks attached to it.
So I think their could be more to that story....
Just remember only those mines, that have a high cost profile or mediocre resources have closed, the low costs high grade mines like WSA kept producing and expanding, because the quality of their reserves/resources.
Time will tell but till now it all looks good with the Nickel price.
WSA must make some real good profits under this current scenario.
jojo
WSA Price at posting:
$5.49 Sentiment: LT Buy Disclosure: Held
