Boned1The graphs showed both price and stocks. With nickel...

Boned1
The graphs showed both price and stocks. With nickel stocks up and new production coming on stream from a number of mines, I would suspect that the smart money has determined that nickel has peaked, and the money is now flowing into oil stocks. Nickel will come good again, it is just a matter of when and whether people are prepared to wait. Some stocks like ALB have had t/o rumour around them, WSA has had good results from drilling, so I suspect that people see more upside in those two.

BHP views mines on a 30 to 50 year life span. They do their NPV's very differently to the analysts. I suspect that BHP has determined the profitability of Ravensthorpe on the long term Nickel price and anything above that is money in the bank for them.

The run up to $6 can be explained on the back of takeover speculation. All the small nickel producers are vulnerable. Sally unfortunately has not held the price.

I agree with you that it is a quality stock. I am more reserved on your comments re short term flucuation. Nickel stocks, in the absence of takeover activity will IMO continue to slide for some time yet.

HT1