SHN - Sherlock Bay Nickel Corporation Limited

[Revhead]

Back in early January, on the hot tips mining thread, miner and I were talking about SHN. At that time was trading at about .093c. Currently it's trading at 11c and looking quite strong.

Montagu have put out an analysis report, (note they were commissioned by SHN to do so), which gives a target price in the mid 20's. You can obtain a copy of the report from the copany at:

http://www.ckgm.com.au/

It's worth a look.
It's also one of my picks in the asx competiton
(and I hold)

Rev

[kwk]

Bought 8.3c 4 December. Sat while it went into the 7c range. Got excited when it went up to around 10c a week ago, watched it slip to low 9c then sold today at 10c.

A puzzling one which in the 6 weeks I held it, only really went crazy just prior to the last quarterly announcement (which said nothing), and then again late this week.

I read the Clive Maund writeup at http://www.clivemaund.com/ , under preview - Aussie Bottlers, and the Montagu report (email the website), but decided it was one of the 'gunner' stocks. I may be very wrong.

However, it is low grade nickel in a very isolated territory, and I have decided that I am better off with something like MCR which is actually doing it rather than gunner do it.

Regards

K

[miner]

Might be on it's way today Rev.

Cheers
Miner

[Revhead]

looks like it miner. good to see at least one person on this site takes notice of my posts ;)

cheers
Rev

[miner]

Gets a bit that way Rev,I'm used to talking to myself now;),been a watching and today just looks better see how we go(12c the charty number to break?).

Cheers
Miner

[Revhead]

I'm at work and don't have access to my charts. However, based on depth, 12c is where the resistance is.

have a good one. see anvil is up this morning - probably in anticipation of quarterly being released.

[miner]

Yep depth says 12c,AVL came up on radar this morning.

Cheers
Miner

[willy_wonker]

Guys, I have an interest buying some shares in this company. What are the numbers? How much revenue or profit can they yield from the current mine?

[miner]

Rev building for a bounce off 10c by the look of it,Willy tea leafs dont give those numbers;).

Cheers
Miner

[Revhead]

Quite right miner - good support at 10c. Hoping for big things with SHN over the next 12 months or so. No guarantees though, but no need to tell you that.

Sorry willy, but I don't get too deeply into the numbers/fundamentals. I just trade the price action. But, from what I hear the fundamentals should be very good.

[miner]

Looks like a base forming Rev after a couple of ****e days for the ASX,things in general bit better today,take a look at PDN you may like it?.

You read the article about"Court halts Philippine mining liberalisation"? affecting a few goldies if not will send to you if you want?.

Cheers
Miner

[Revhead]

I've done some reading on it this morning, so don't need it but thanks for the offer.

I see IRN got hammered down to 18c. Recovered back to 31c now though. Would have been a good trade there if you were onto it - were you? What we could do with the benefit of hindsight aye!

Similar drop with LAF which is in the philippines too. It's recovering now too.

Rev

[miner]

Dont mention IRN had half an eye on for a while saw today when only one bid on depth then got side tracked watching RED for another bounce a missed it same with LAF:([B)];).

A roughy to watch is GDN looks like will bounce about here,5.4 been building and 5.5 today,vol a bit low but may give a trade if it breaks 6c will do more.

Cheers
Miner
P.S also SRI has got nailed last few days,a bit more then bounce maybe.

[draffthorse]

Minor,

You might be interested in the following announcement on GDN

11 November 2003

Company Announcements Office
Australian Stock Exchange Limited
20 Bridge Street
SYDNEY NSW 2000

Sale of Tenements
The Directors of Golden State Resources Limited are pleased to announce they have entered into a heads of agreement to sell its tenements comprising the Leonora Project (excluding joint venture interests) to Easton Minerals Limited (“Easton”) of Canada.

Easton is a public company listed on the Toronto Stock Exchange.
The consideration payable by Easton is A$6 million and is subject to the following conditions precedent:

(a) Due diligence on the tenements by Easton within 14 days of the date of the agreement;

(b) Easton completing a capital raising of up to A$6 million within 90 days of the date of the agreement; and

(c) the parties obtaining any approval, consent or registration, as may be necessary, within 90 days of the date of the agreement.

Richard Sciano

Points of concern.
1. The company failed to inform the market if ‘due diligence’ was completed within the 14 days of the date of the agreement.

2. Also following this announcement Easton were suspended on the Canadian stock market. I am not sure if they still are. If still suspended not sure how they will go about issuing a prospectus to raise the necessary capital to meet the Feb dead line.

3. Golden States announcement to the Canadian stock market allowed for the agreement to be extended beyond the Feb deadline. An announcement that was conveniently left out of the ASX announcement.

4. I have tried E-mailing Golden States a number of times on these matters with negative results.

Just a little info to do some home work on.

Cheers

Drafthorse

[miner]

Thanks for the info Drafty was just looking for a trade and thought it looked like 5.4-5.5 may be the number it will bounce off.

Was some ok vol and has been some good sized buy orders lately which caught my eye,see how we go.

Cheers
Miner

[miner]

Just read the latest ann Drafty sounds like the deal could still be on,they are due to start drilling soon which may? be why the vol I noticed.

Anyway they have ground in a good area,went through there years ago,Laverton is the next town to the east and a lot of miners people look talk about are there,as is Sandstone to the west.

Anyone north of Leonora,Laverton is worth a look,AGC is one they are in Wiluna(the house next to the pub has beer cans for driveway gavel)and ran on ok ann last week.

Rev sorry for talking non SHN on your thread will move if we keep going.

Cheers
Miner

[miner]

Few starting to go at 11c Rev,slow day though was just one trade for ages.

Cheers
Miner

[Revhead]

more fun watchin paint dry at the moment. pretty slow everywhere!!

Rev

[miner]

Yep last week was dead(bit better friday)and today,well the grass outside my window has grown 1mm.

Cheers
Miner

[miner]

Rev your share up 32% today:D[8D];).

Cheers
Miner

[Revhead]

The next month or so could be very interesting for SHN, expecially with BFS due end of march quarter.

encouraging ann out this morning.


SIGNIFICANT METALURGICAL TEST RESULTS

The Directors of Sherlock Bay Nickel Corporation Limited (SBNC) advise that the results of independent metallurgical test work carried out as part of the Bankable Feasibility Study (BFS) have provided a materially higher recovery rate than had been estimated in initial scoping work that has previously been released to the market.

At this time two sets of metallurgical tests using the Bio Leach method have been completed with a third proprietary leaching test in the final stages. The results of the two completed tests have given a very significant 88% Ni recovery rate together with, what the company considers, a relatively short leaching time of 37 days. The
directors consider this to be an outstanding result, as potential increases in recovery have a significant result on project economics.
In the context of the scoping study this result is well ahead of the recovery rates that were used. A recovery rate of 75% Ni was used in the scoping study.

SBNC still has further test work in progress and further results will be announced as they come to hand. While using a different bacterial technology, at this time SBNC has no cause to believe that these results will vary materially adversely to those obtained to date.

The full BFS is scheduled for completion by the end of the March quarter with a full market update to be provided at that time on the project.

Regards
AL (Boris) Gerick
Managing Director

[Revhead]

The good thing about following mining stocks is that can be very volatile. Large spikes up and good dips down provide plenty of opportunitys to make very good returns.

In the case of SHN there have been recent resource upgrades and the BFS was released. The market responded accordingly and the price jumped over a 100%.

Price is now sliding downwards. From 10c, it spiked up to a high of 22.5c and we are now at 16c after bouncing off 15c a day or so again.

So where do I buy back in. Historical support lies around 10c. But will it get back down that low - hard to say. But fundamentals are very good and SHN will rise again - no guarantees of course - I have to say that!!

For the long termers when you buy is not so important. But for short termers like me it's more important as I don't like money tied up in stocks that aren't moving.

one to keep an eye on anyway...

cheers
Rev

now that I have figured out how to post a chart I will one over the weekend.

[Revhead]

SHN using friday data. Wouldn't be keen to buy on this chart - could be going anywhere - suspect further down...

Rev


http://img.villagephotos.com/p/2004-10/868523/SHN291004.gif

[kittydashwood]

Some hedge funds must be hurting about now.

I have followed this stock for more than a year now and owned it a couple of times. The proven resource base for this stock is fantastic, great grades big volumes, however as you suggest RevH
This one should fall over the next two weeks, I'm picking new support at .125 - .135 a good buy? The Chinese rate tightening may partially sudue nickel prices for the short term.

[Packersoldkidney]

Well, Moonshine, I now have to change my attitude to this stock, especially after the succession of good announcements capped off today by another. You asked me on one of the 1600 SHN threads around here whether I was still suspect on this stock, but for a spec the outlook for it is looking quite good.

Problem is I guess is the general market conditions at the moment. Not really favouring spec miners, even if they are concentrating on iron.

[Moonshine]

The deal with Mineralogy could be announced any day from this point forward.

Do yourself a favour and spend 30 minutes familiarising yourself with the consequences for ARH (formerly SHN)... this stock IS the next FMG.

Topping up on all weaknesses. Today should hopefully provide some more opportunity at 17c.

Cheers,

Moonshine