Morch
23-06-2004, 12:54 PM
Is anyone following nickle related mining stocks and if so would you be kind enough to post the tickers.
Thank you in advance!!!
An interesting article below.
Regards,
Morch :)
This story is from our news.com.au network
Source: The Australian
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Nickel boom's 'second leg'
By Robin Bromby
June 21, 2004
INVESTORS will be watching local nickel stocks this morning following a sudden boom in the metal's price as markets realise global supplies are becoming ever tighter.
Some analysts will see this as the beginning of the predicted "second leg" of the nickel boom.
Nickel rose more than $US2000 a tonne, or 13 per cent, over the last three days of last week. The three-month buyer price ended at $US14,550 a tonne on Friday.
In early trading on Friday, funds pushed nickel to an intraday high of $US15,300 - up $US1300 from Thursday's closing price, before it settled $US550/tonne higher. That rise followed a $US1095 leap on Thursday.
ANZ Institutional Bank resources analyst Daniel Hynes said yesterday that big international funds had begun to move back into the nickel market as physical stocks at the London Metal Exchange continued to fall.
LME stockpiles have now dropped below 9000 tonnes.
When the metal's price went above $US17,000 in January on fears of a metal shortage, the LME warehouses were holding about 24,000 tonnes of the metal.
"People are just starting to realise the fundamentals of nickel far outweigh any detrimental effects of the weakening US dollar or interest rate rises," Mr Hynes said.
Sydney-based investment adviser Fat Prophets told clients late last week that nickel prices were surging again because of genuine tightness in supply.
"Positive sentiment is returning to the metal sector on the back of further strong US and European economic data and diminished concerns about slower Chinese growth," Fat Prophets said.
Nickel's resurgence has been sudden. Just a month ago Deutsche Bank reported the falling price at that time - nickel went as low as $US10,400/tonne - was consistent with its view that there was no undue pressure on supply.
But Societe Generale analyst Stephen Briggs now says nickel production will lag well behind demand this year and the deficit for 2004 could be as high as 25,000 tonnes - and there would be a similar deficit in 2005 unless the world economy slowed sharply.
"Nickel stocks would still appear to be heading towards untenably low levels that might trigger another, more radical round of price rationing of demand," Mr Briggs said.
Meanwhile, local nickel players have not been letting the grass grow under their feet.
Mincor Resources confirmed last week it was aiming to increase production by 80 per cent over the next two years as it brought new mines into production. On Friday, Salay Malay Mining bought the mothballed Lanfranchi nickel mine at Kambalda.
In other recent developments, View Resources said its newly acquired Bronzewing gold property would also be explored for nickel, something that had not been done there since the 1960s.
And gold explorer Marengo Mining has acquired the Minigwal project north of Kalgoorlie which has nickel potential.
Thank you in advance!!!
An interesting article below.
Regards,
Morch :)
This story is from our news.com.au network
Source: The Australian
back
PRINT-FRIENDLY VERSION
EMAIL THIS STORY
Nickel boom's 'second leg'
By Robin Bromby
June 21, 2004
INVESTORS will be watching local nickel stocks this morning following a sudden boom in the metal's price as markets realise global supplies are becoming ever tighter.
Some analysts will see this as the beginning of the predicted "second leg" of the nickel boom.
Nickel rose more than $US2000 a tonne, or 13 per cent, over the last three days of last week. The three-month buyer price ended at $US14,550 a tonne on Friday.
In early trading on Friday, funds pushed nickel to an intraday high of $US15,300 - up $US1300 from Thursday's closing price, before it settled $US550/tonne higher. That rise followed a $US1095 leap on Thursday.
ANZ Institutional Bank resources analyst Daniel Hynes said yesterday that big international funds had begun to move back into the nickel market as physical stocks at the London Metal Exchange continued to fall.
LME stockpiles have now dropped below 9000 tonnes.
When the metal's price went above $US17,000 in January on fears of a metal shortage, the LME warehouses were holding about 24,000 tonnes of the metal.
"People are just starting to realise the fundamentals of nickel far outweigh any detrimental effects of the weakening US dollar or interest rate rises," Mr Hynes said.
Sydney-based investment adviser Fat Prophets told clients late last week that nickel prices were surging again because of genuine tightness in supply.
"Positive sentiment is returning to the metal sector on the back of further strong US and European economic data and diminished concerns about slower Chinese growth," Fat Prophets said.
Nickel's resurgence has been sudden. Just a month ago Deutsche Bank reported the falling price at that time - nickel went as low as $US10,400/tonne - was consistent with its view that there was no undue pressure on supply.
But Societe Generale analyst Stephen Briggs now says nickel production will lag well behind demand this year and the deficit for 2004 could be as high as 25,000 tonnes - and there would be a similar deficit in 2005 unless the world economy slowed sharply.
"Nickel stocks would still appear to be heading towards untenably low levels that might trigger another, more radical round of price rationing of demand," Mr Briggs said.
Meanwhile, local nickel players have not been letting the grass grow under their feet.
Mincor Resources confirmed last week it was aiming to increase production by 80 per cent over the next two years as it brought new mines into production. On Friday, Salay Malay Mining bought the mothballed Lanfranchi nickel mine at Kambalda.
In other recent developments, View Resources said its newly acquired Bronzewing gold property would also be explored for nickel, something that had not been done there since the 1960s.
And gold explorer Marengo Mining has acquired the Minigwal project north of Kalgoorlie which has nickel potential.