Nickel - IGO, MCR, WSA, BRW, JBM, SMY ,TTR, etc

[tricha]

Hi Investors

Now REM long gone, time to update!

- Nickel dropped a bit, but still at a great price of $21,500 Oz and Nickel Inventories steady.

Patience is the key, BHP might decide to clean up small Nickel companies, six monthes will tell, new Nickel HQ in Perth to organise 1st.
.................................................. ...................

IGO , careful selling by Equity Trusties - news out today.

Not like AMP who just dump, only need to look at Mincor, must have made big losses on it, plummented the price twice in recent history.

These guys being a lot smaller just sell small lots at a time as to not scare the market, I think they averaged $1.28 cents a share,around a million shares, not many in the big picture, but would have made a reasonable profit.

Was excellent buying opportunity when $1.24 - $1.26

.................................................. ...................

Patience the key, wait for Mincor to report, upside, IGO heaps of upside, huge resource upside to come, WSA a bit unknown but huge resourse and extreme grade, JBM we all know that one except for most of the brokers, SMY well they broke, TTR running out and moving to high grade gold, BRW unknown but in the right area and excellent backing.

Cheers from [B)][}:)]

[tricha]

Mincors 13% production downgrade report is not as bad as all that's made out, on target 10,000 tons this year, nickel around $21,500, a ton still ( hedged funds will water that down), so hopefully will earn 10c a share and pay around 3c a dividend.

And still earn 20c next year, on an 80c share would be awesome!

At least they are being honest about it now, you can't predict old mine conditions. It could be far worse, mine collapse and people killed!

The ace up their sleeve is the sale of TYC, which could bring them 6 to 10 million cash depending on the sale price.

And like IGO, JBM will find a lot more NICKEL!

And who dumped AMP[?][?], twice they have done this and killed the price, twice have brought around an excellent buying opportunity! Could this be 3rd time lucky?

Independence Group reports new leg high grade outside reserves and resources!
Only the start I feel of an increase to 15,000 tons a year[:p][:p]

Jubilee Mines much like IGO, putting in a new decline 4.4 million to access the Alec Mairs deposit!

Regards from the [B)][}:)]

[tricha]

IGO - Makes sense now, they are employing 3 new people, all different positions, maybe even take on more, if suitable people apply.
They are into this new leg, expect them to ramp production slowly up to 15,000 tons, as reported in last presentation.[B)]

Soft production, not really 200 ton short, about 2%, what has the price increase been, a lot more.

IGO is slowly on the move and with the 25 billion dollars coming on stream soon, maybe fast!

Cheers [B)][}:)]

[tricha]

IGO - Makes sense now, actually draw your own conclusion!

10.05.05 Opening Brief .

Quote M D Bonwick - In the Long mining complex, we're currently producing at around 9,000 tons of contained nickel per annum from three seperate undergound mines; remnant mining of the Long and Gibb South ore bodies and new developement of the Victor South series of shoots.

We would like to find another stand alone deposit which is either accessable from the Victor South decline, so that we can increase production to say, 15,000 tons, Long is operating at close to capacity given its geotechnical environment and we have a robust four year mining plan defined for Victor South.

10.06.05 High grade Nickel outside Victor South resource -

I'm not writing this one out, PDF files, but if you read both announcements and you saw the 3 job adverts in the Kalgoorlie miner recently 1+1+1= Draw your own conclusion.

.................................................. ....................

WSA the next JBM, news out today big resource upgrade.

You can't buy them all so I'll stick with IGO, so many hot shares out there and Nickels still hanging out at $22,000 a ton!


Cheers [B)][}:)]

[ASXIOU]

heya Tricha
IGO slowly but steadily moving north. few big buyers lining up aswell. probably see it break $1.40 soonish IMO ;)
cheers

[tricha]

Hi ASXIOU

Yes someone did some careful buying on IGO today! JBM nearly $7.00, wow! MCR steady, on reasonable turnover.

The Super Cycle - this should be the biggest of them all, this is only the begining phase., that's my view.

.................................................. ...................

Non beleivers please read the latest Resource Stocks mag - and make your own view

Small extract as follows -

Goldman Sachs, is predicting a rapid economic expansion until 2050, not only in China, but also Brazil, India and Russia, a fast growth grouping he dubbed the BRIC economies.


.................................................. ...................
Just another example!

India's Jindal signs stainless steel plant agreement

Metals Insider - 13 June 2005

India's Jindal Stainless has signed an agreement with the government of the eastern Indian state of Orissa for setting up a 1.6 million tonne-capacity integrated stainless steel plant.

The project, to be located at Kalinga Nagar would also include a 500 MW captive power plant, the company's vice-chairman and managing director Ratan Jindal told local reporters.

The project will be implemented in five years and in two phases.

Regards [B)][}:)]

[Sid]

Further announcement for IGO re McLeay offshoot:

http://stocknessmonster.com/news-item?E=ASX&S=IGO&N=292090

[SEC]

Trisha, I can't remember if it was you or someone else that posted a link to analysts' comments on the Mincor website but they made excellent reading.

My slight preference is MCR due to very low forward PEs (3.5 for 06) but production downgrades have been forthcoming of late. IGO has too much nickel hedged at way below equivalent futures prices (nearly 40% of production hedged up to June 06). And JBM is overpriced.

SEC

[tricha]

Hi SEC

Agree with you with JBM, over priced, MCR excellent value, but if you go back to Sid's previous post and go back to the my 14.06.05 post.

Tends to suggest IGO will ramp up to 15,000 a year and then see what happens.

My view only - assumption is the mother of all f...ups, but the risk is small and the gain huge!

Regards [B)][}:)]

[SEC]

Agree Trisha, if you ASSUME you make an ASS of U and ME.

Unfortunately, you are ASSUMING IGO has discovered enough rich nickel deposits over the past month to increase production from 9000T/y to 15000T/y.

That's a big call.

Patersons has IGO nickel production relatively steady at 9-10KT/y until 2007.

Another cloud on the horizon is nickel's extreme backwardation and analysts' price forecasts (ASSUMED of course!) from 2007 onwards. Consensus estimates are around the USD9000/tonne mark, which haven't budged in over a year. This is compared to oil, iron ore, uranium and met coal, the estimates of which for 07 onwards has gone up heaps over the past year.

Nickel should be a part of a diversified resources portfolio, but not a large one.

However if IGO can improve its hedge book and forward sell nickel at AUD21000/T from 07 onwards.......

SEC

[SEC]

Nickel down about 15% in a week and could fall even lower as traders panic and sell. My guess is USD14000/tonne but the fundamentals still look good as stocks are still tight and the 5 year uptrend remains intact. In the meantime I'm waiting for JBM to fall back to below 600 and MCR below 60.

SEC

[tricha]

Hi Sec

Yes a big drop in the nickel price, with inventories staying the same, does not make sense .....

IGO about the only nickel stock going up yesterday with reasonable turn over.
Just like to point out - Chris Bonwick (CEO) said he would like to get production up to 15,000 tons and if you read closely to what he said in his last brief and were to match it to the last nickel find.

The Equation is a match

Also they pulled workers of harvesting to open up this new leg.
Also they advertised in the Kalgoorlie Miner for new staff in three different positions.

And this does not take into account the new find they will get when they finish the new decline.

Also IGO, as far as I am aware is the lowest cost nickel producer in OZ.

Mincor cheap at 63c yesterday, a bargin if you got in.
60 c would be a steal but I do not think it will go that low.

Tectonic Resources TTR, look good and have got excellent exposure to gold..(TTR went up 5.1% yesterday)

From [B)][}:)], who is really a cot case now, guess what, now live in Kalgoorlie and works at a nickel mine. [:o)][:o)]

[Happy]

I am with you both on JBM exited at $6.10 - can't believe it went to $7. A bit of waiting and seeing. Will jump back in if goes back to below $5.75 odd.

[JBmurc]

;)TTR looking very undervalued at 19c;) P/E-2.28
-Major shareholder-civic trans services increase holdings from 9.48% to 11.19%-[?]start of the month -Sanpoint pty ltd- buys up more than 8million shares 5.30% -Directors hold 8.55%-
STRONG BALANCE SHEET;)

Capital Structure ($ 000s)
Total Debt 244 Interest: 112
Long Term Debt 147 ( 1% of capital )
Preferred Stock --
Shareholders Equity 22,533 ( 99% of capital )

Current Position ($ 000s)
2002 2003 2004
Cash Assets 743 1,645 11,572
Receivables 3,430 4,234 5,818
Inventory 161 474 313
Others 98 18 24
Total Current Assets 4,432 6,370 17,727

Accounts Payable 2,428 3,120 3,848
Debt Due 11 210 98
Others 960 598 2,646
Total Current Liabilities 3,398 3,927 6,592


Per Share Statistics
06/95 06/96 06/97 06/98 06/99 06/00 06/01 06/02 06/03 06/04
Sales ($) 0.29 0.26 0.27 0.02 0.00 0.00 0.23 0.14 0.13 0.26
Cashflow (cents) 2.6 -2.7 2.2 -0.7 -0.7 -0.6 6.0 9.7 2.6 10.3
Earnings (cents) -4.3 0.2 1.1 0.2 -0.7 -0.6 -1.4 -0.2 1.7 8.8
Dividends (cents) -- -- -- -- -- 0.0 -- -- -- 2.0
Franking (%) -- -- -- -- -- -- -- -- -- 100
Capital Spending (cents) -1.2 -0.5 -0.2 -4.5 -0.3 -3.8 -9.9 -3.5 -2.0 -2.3
Book Value ($) 0.10 0.09 0.10 0.08 0.06 0.05 0.02 0.04 0.05 0.14
Shares Outstanding (m) 71 71 71 126 126 126 138 138 138 159
Avg P/E Ratio -- 81.9 10.3 95.0 -- -- -- -- 4.1 2.8
Relative P/E (%) -- 644.3 70.9 660.2 -- -- -- -- 30.9 19.7
Total Return (%) -- 6.7 -43.7 22.2 -50.0 0.0 -20.7 -49.6 53.4 241.1
Return Relative to Market (%) -- -6.7 -71.5 19.6 -64.1 0.0 -30.9 -44.8 55.5 219.7
Return Relative to Sector (%) -- -5.9 -22.7 45.8 -50.5 0.0 -44.2 -129.8 -- --


Historical Financials
06/95 06/96 06/97 06/98 06/99 06/00 06/01 06/02 06/03 06/04
Revenues ($million) 21 18 19 2 0 0 32 20 18 37
Operating Margin (%) 28 19 29 -33 -2,973 -292 63 32 22 44
Depreciation ($million) -2 -0 -0 0 0 0 -4 -2 -1 -1
Amortisation ($million) -8 -3 -4 0 0 0 -15 -5 -1 0
Nt Profit Bef. Abnormals ($million) -3 0 1 0 -1 -1 -2 -0 2 12
Net Profit ($million) -10 -0 1 -3 -3 -1 -5 2 2 12
Income Tax Rate (%) 7 156 44 26 0 0 0 0 0 20
Net Profit Margin (%) -15 1 4 10 -3,252 -374 -6 -1 13 33
Employees (thousands) -- -- -- -- -- -- -- 0 0 0
Long Term debt ($million) 0 0 0 0 0 0 0 0 -- 0
S/holders equity ($million) 7 7 8 10 7 6 3 5 8 23
Return on capital (%) -43 2 10 2 -12 -11 -31 -2 31 54
Return on equity (%) -45 2 10 2 -12 -12 -56 -6 31 54
Payout Ratio (%) -- -- -- -- -- 0 -- -- -- 23


mining studies on NOA 2 deposit have already suggested total cash costs of less than $385 per ounce and low capital costs of about $1.5 million before generating postive cash flow-from resource stocks

TTR-now has a gold inventory of 850,750 ounces,
TTR-also have 64t copper,8.5moz silver,90,000t of lead,60,000t zinc
principally in two key deposits called Kundip and Trilogy.


JBMURC -now holds TTR;)

[tricha]

Yes TTR looking great JBmurc, but alas I can't have everything, but if gold was to go off, so say some people, TTR would explode.[:p][:p]
So if you believe in gold believe in TTR!:D:D

Nickel price stable.Inventories falling again which is great, lets hope they keep falling and price goes up again.

MCR great buying at 62.5c, IGO being well supported, same as SMY, WSA more great news, JBM going for it again.

Cheers [B)][}:)]

[David Hardman]

IGO been in demand over the last few days

Often had troble getting through 1.40

Will be interesting if it can break out of this range

http://sv1.randomcrap.net/uploads/files/0/igo.png

[JBmurc]

-AGM-Tollhurst has just released a note on AGM valuing at 19c+

AGM-trucked ore thru the Hellyer mill during June. Another trial is planned for July and August and they plan to use the mill for commercial production shortly afterwards;)

-great way to pay for the new mill at avebury;)

great for shareholders, my pick 18-20c by years end

JBMURC-holds AGM

[cdchi1]

Hi JB

Good little nickel stock AGM...not holding but i wish them all the best particularly as I own Intec shares...which of course owns the Hellyer mill :D

Cdchi1

[tricha]

Hi folks

Yes AGM is interesting, worth a go.

I will stick with IGO and MCR. Expect to get reasonable dividend from both of these for 2005 year end.
And heaps of upside.!!!!!!!!!!!!!!!!!!!.

Can IGO break out of it's $1.40 David Hardman, we will see very shortly, is all I will say.
Expect IGO to announce on MRX very soon.

JBmurc did you buy into TTR, as you say it looks a great company, but the gold price scares me, but things can change fast. If gold goes up it will be a steal!

JBM, WSA look at them go, imm! Can't have them all.[:p][:p]

Cheers [B)][}:)]

[tricha]

Well, AMP has done it again, thought so, dumped MCR shares. Crashed the price from 72c down to 62c virtually overnight.

3rd time this has happened

To me, this represented great buying opportunity, brings the fear and greed out in a player!
I wonder if they will buy them back again when the yearly wrap up is done, around 25th August, after they announce a solid 5c a share dividend[?][?]on a 69c share.
With even better to follow next year[:p][:p]

Time will tell and sooner than later! Great little company and a great future and no debt!

Regards[B)][}:)]

P.S The cheque will be going into paying of property - do not keep all your eggs in the one basket.

[tricha]

Good news from Mincor 18 million sitting in the bank, 3 new mines operating and paid for by cash.

The harvest is now truely under way and I expect them to pay out 5 cents a share dividend!:)

Jubilee and Western Areas going for it.

TTR running out of Nickel and going into gold.

BRW moving back up and interesting.

SMY doing it.

The ace up my sleeve is still IGO, time will tell real soon! Should be a $3.00 share based on JBM's price.
Price is holding up well, no volume and no news till next week and maybe until September for reasonable resource upgrade.

Have a great weekend regards[B)][}:)]

P.S I'm doing the night shift tonight at a Kalgoorlie nickel mine, keeping an eye on my Nickel.LOL, but it's true!

[JBmurc]

AGM might final break the 12-12.5c range its been trading all day at 13c little left in depth may see 13.5 tomrrow -to bad about the downtrending nickel price-;) up 8.3% from 12c

Not so for the booming copper price-so glad I brought those AVM shares
at 34c;)up 29% and looking strong

JBMURC-holds AVM AGM;)

[tricha]

SO MANY GREAT MINERAL PLAYS OUT THERE!
Hi J B Merc
I looked at AGM and yes they could do it, had AVM for a while, but I do not like Africa and especially the Congo. CORRUPTION!
But who knows![?][?] ME my gambles are in Australia.

IGO result disappointing for the quarter, but predictable.Reserve upgrade will be the kick for this one, not long now.:(

MCR has to be the go, if they hit 20c per share earning next year. I have been saying this for a long time, will out preform expectation, this year![:p][:p]

BRW starting to move, interesting to hear they are only about 4km away from JBM's new Prospero mine and into the same belt leading to IGO's Long Nickel mine.So I bought back into it as a gamble, you never know![}:)][}:)]

As far as JBM goes :D:D, stuff the brokers recommendations[xx(][xx(]

Fox Resources have to be the go, FXR, I'm close to pushing the button.[8D][8D]

TTR only if gold improves, running out of nickel.

SMY getting there, same as WSA with it's huge reserve at huge % nickel.[8D][8D]

Cheers regards the [B)][}:)] Another beautiful day in Kal!

[tricha]

News Flash - Rumour of the day!

Consolidated Minerals after IGO -In Saturdays business section of the Western Australin News, now I know why after bad report shares going up again with good turn over!

And they could be the ones buying Matrix last week as well,makes sense.

Regards [B)][}:)]

[tricha]

Huh someone in the hunt for MCR today, I wonder if it's those dummies from AMP buying them back again, wouldn't suprise!
Another drill update, but nothing great.[:p]

Just got greedy, bought some more myself today. Remember will earn around 20c a share this year!

JBM, whammo again, amazing.[}:)][}:)],( but do not hold.)

IGO, buying new extensions to the long nickel mine.

The rest, steady as they ......

Regards [B)][}:)]

[tricha]

Why mincor looks the goods


Mincor Resources NL (MCR)
Last Updated: 1 August, 2005

Commentary & Company Details

QUALITATIVE ANALYSIS


Business Description
Mincor Resources NL (MCR, formerly Africwest Gold NL) is a mining and exploration company with several nickel projects in the Kambalda region of Western Australia.


Company Strategy and Prospects
(Last Update: 28 July, 2005)
MCR 's main objective is to grow through the effective management of its mining operations at Kambalda and the exploration, acquisition and development of new operations in Kambalda and elsewhere in Australia. Production for FY06 is expected to be around 13,000t of nickel in concentrate.

Mincor Resources reported NPAT of $10.12 million for the six month period ended 31 December 2004, up 143% from the pcp. Revenues from ordinary activities were up 43% from the pcp, to $55.42 million. EPS (diluted) was 5.2 cents, compared to 2.2 cents in the pcp. The fully franked interim dividend declared was 1 cent. The company attributed the revenue result to improved productivities, rising production and strong nickel prices generating buoyant revenues. The results were achieved on half-yearly production of 183,381t of ore for 4,514t of nickel in concentrate. The company added that the prime revenue contributor was the Miitel Nickel Mine, followed by a rising contribution from Redross, which started production in August.


Based on EPS forecasts of 11c and 20c for 2005 and 2006 and a long term EPS growth rate of 30%, MCR is under valued according to the Aspect model

[cdchi1]

tricha

The latest mincor quarterly was much more impressive than their last one...and imo a lot more transparent.

PErhaps they ahve finally turned the corner.

I will wait for the annual report and audited statements before making a decision whether its time to get back in.

As for IGO...I really hate WA Newspaper right now! Couldnt they wait until i got back in before posting that rumour...d'oh

Cdchi1

[JBmurc]

;)finally AGM through to 14.5c up 11% today ;)7mill traded could see 20c soon as more great results come through-14m 2.5%NI 330m
ore open in all directions -Avebury is looking several times larger than resources currenty being used for defintive feasibility study;)
:D:D up 20% AVM-up 44%;)

[tricha]

WEll IT'S All great, what ever metal we get into, great to see!

Hey Carlos

Hmm when MCR's report comes out in a few weeks, I'm predicting a 5 cent dividend, which will cost them about 10 million and leave them 8 million play money. The horse will have bolted and AMP will be buying their shares back again, may be thay are using it as a tax write off[:p][:p]

And correct me if I am wrong, a 6 to 10 million bonus coming MCR's way,depending on how TYC sells and the way the price is going a ten.

The dividend would be twice as good as IGO per $1 invested at this stage if I am right.

Well J B Merc, good calls, AGM going for it and AVM too, but those mad hatters in the Congo scare the hell out of me.

Regards [B)][}:)]

P.S Gold still suks!

[David Hardman]

This time :)

New highs, Break out coming. Sexy chart

http://arc.0daymeme.com/uk/igopng.ukKoGwY7ijiIrt-waqf28.png

[tricha]

Yes David

Breakout time and about time! And no one much is selling. They have around the same amount as JBM. So it's not overly diluted.

But I expect MCR to go harder though, more good news of Nickel [}:)][}:)]finds today, an early increae in reserves and Mr Moore has his presentation tomorrow at the Miners and Diggers Conference in Kal.

I'm in Kal hence the time diffence, Mon 2030 over here, but I'm working unfortunately. Next year I'll have to make it an issue to go.

Kal has a huge display that shows the gold, nickel and OZ$\US$ price you can see from 200 metres away.

Cheers [B)][}:)]

[Moonshine]

G'day Tricha,

Was just wondering if you were planning on catching the Arafura presie tomorrow... about 11am i think from memory...?

No sweat if you weren't going to make it, but since i can't be there... would be interested to here from someone who might get to see it??

Cheers,

Moonshine

[tricha]

Another great week for Nickel stocks.

Great to see the nickel price back to $20,000 OZ last night.

Another rumour of the day for IGO on Thursday, W A News.

RUMOUR OF THE DAY
AS EXPECTED THE TONGUES ARE WELL AND TRUELY WAGGING AT RESOURSES SCHMOOZIE THAT IS DEALERS AND DIGGERS.
WORD FROM THE CAMP YESTERDAY WAS THAT CANADIAN NICKEL PRODUCER LIONORE MINING HAS GOT ARGONAUT CAPITAL PREPARING A $2 PER SHARE BID FOR KAMBALDA NICKEL MINER INDEPENDENCE GROUP.

A new broker report out on IGO under their web site!

I'm picking no one is going for IGO, because of their off take agreement with BHP and the fact BHP released more groung to IGO.
Maybe BHP could buy them out to get their mine back, but why bother when they are still making money out of it this way.

Hence I sold half my IGO on Friday morning and bought another 30,000 Mincor.
Expect Mincor to out perform IGO in the short term and expect to see a good div announced next week!

And took another gamble and bought 30,000 FOX. Now this ones is a takeover possibility.

Cheers [B)][}:)]

P.S IGO is still a great company with an excellent future.Hold IGO, MCR core investment, they are earning great money and paying div, BRW, TIR, MRX, FXR pure gambles.

[JBmurc]

;)agm up to 15c looking strong will see 18c soon

[tricha]

Will the nickel boom never bust?
Source: Ferret



See also:
Nickel Board
Nickel CatalogSince late 2001 nickel prices have been on a dizzying upward trend, peaking at US$17,770/t in early 2004, and most analysts expect prices to remain high and volatile for at least another 12 months.

The price boom has been underpinned by two key factors: the slow growth of primary nickel supply, coinciding with massive growth in Chinese consumption.

The origins of the supply problem go back to the mid-1990s. Inco had completed the purchase of the Voisey's Bay deposit, and according to the original plan the operation was due to be producing about 122,000tpa of nickel by mid-1999.

At the same time, the first generation of pressure acid leaching (PAL) projects in Australia were being developed. The Cawse, Bulong and Anaconda (Murrin Murrin) operations were expected to come on stream at the end of the decade and were scheduled to be producing around 60,000tpa of nickel by 2000.

As it turned out, Voisey's Bay was delayed by a series of political and economic issues, and is now not scheduled to start production until late 2005 – and even then only at a rate of 60,000tpa. The three PAL operations did start production at the end of the 1990s but have not produced at original projected levels. Bulong shut in 2003, with the other two producing about 37,000t of nickel in 2004.

That these operations did not produce at expected rates had a massive impact on nickel supply. But they also had a big impact on investment in the rest of the nickel industry: the general belief was that low capital costs at the new PAL operations, coupled with operating costs of well below US$1/lb, signalled a revolution in the industry's cost structure.

The way perceptions of long-term nickel prices changed during the 1990s illustrates the impact of the new technology. At the start of the decade, the industry was typically using US$4/lb as its long term planning price. By the end of the decade, however, figures of US$3.00-3.25/lb were common.

For existing producers, the anticipated decline in industry costs meant that cost cutting inevitably became the focus of attention. In any case, new projects were simply not viable on the basis of the new lower long-term price assumptions.

The result was investment in other new capacity was also curtailed, which has meant supply has been unable to keep pace with the growth in demand.

However, the cut back in investment might not have become such an issue but for the emergence of China as a major nickel consumer. As recently as 1999, China was consuming only 48,000tpa of primary nickel, under 5% of global consumption.

But Chinese consumption picked up dramatically in 2000 and has continued growing rapidly ever since.

Between 1999 and 2004, the country's consumption almost tripled, taking its share of the global market to more than 11%.

The combination of slow-growing supply and fast-growing demand has resulted in stocks of nickel declining steadily over the last few years, reducing the stock-consumption ratio to its lowest ever level.

Little wonder prices have been so high.

The market has responded to high prices in a variety of ways. On the demand side, there has been some limited substitution away from nickel. In particular, there has been some switch away from conventional 300-series stainless steel into ferritic stainless (non-nickel containing), and in Asia, into 200-series stainless (containing low levels of nickel).

Past experience suggests most of this substitution will be reversed, with consumers moving back into the 300-series once nickel prices fall. On the supply side, there are now indications that investment in new capacity is gathering pace.

Inevitably it is the big projects that have attracted the most attention, though only one major greenfield operation – Voisey's Bay – will be on stream in the next two years. Two other large projects have received the go-ahead: BHP Billiton's Ravensthorpe 50,000tpa nickel mine and associated expansion of the Yabulu refinery

[tricha]

HOME > BASE METALS
BASE METALS


DIGGERS AND DEALERS
Bonanza nickel grades continue for Xstrata’s Cosmos project

The purchase of Australia’s richest grade nickel operations by Xstrata plc (LSE: XTE) was achieved during a strong price phase for nickel metal and while the commodity price hit a year low during Diggers & Dealers the news for the big global mining house was good.
Author: Ross Louthean
Posted: Friday , 08 Aug 2008

PERTH -
Delegates attending this year's Diggers & Dealers Forum in Kalgoorlie went away shaking their heads at the ongoing spectacular exploration results from the Cosmos nickel project in Western Australia's north eastern goldfields.
Xstrata had purchased these properties and corporate assets of Jubilee Mines late last year for $A3.1 billion ($US2.76 B), a deal that earned Jubilee's CEO Kerry Harmanis this year's Dealers award at the Kalgoorlie conference.
While hindsight would say it was a high price, there were few experienced market analysts and nickel miners believe the dip in the nickel price to near $US8/lb during the conference was little more than a short-term aberration - aided in part with the slow down in nickel imports to China during the Olympics.
But any reservations about Xstrata's buy was counter-weighted by results released by Xstrata Nickel Australasia's chief financial officer Shaun Usmar and geology and business manager Peter Langworthy's conference finale presentation.
Delegates were told that the exploration and resource development budget at the operations at Cosmos, Sinclair, Cunyu and other joint ventures this year would total $A50 M ($US44.6 M) and the exploration blueprint for the next four to five years would see $A200 M ($US178.4 M) spent - "one of the largest exploration programmes in the Australian mining industry."
Drilling below the established and planned mine developments at Cosmos has shown up a series of new orebodies and the drill hits in one zone included 10 metres grading 8.5% nickel, 4.5m @ 8.7% Ni and 28m @ 9.5% Ni, while to the west the drill hits included 17m @ 3.4% Ni.
In the AM5 zone a high grade disseminated target will soon have a resource estimate. Latest bit hits included 78m @ 2.5% Ni and 138m @ 2.6% Ni.
This was, said Shaun Usmar, the heart of one of Australia's most prospective and productive nickel sulphide regions that was a "relatively immature province versus other world class nickel camps such as Norilsk and Sudbury."
There was 15 kilometres strike of prospective ultramafic. with opportunities for high tenor-high grade deposits as well as opportunities for bulk, low-grade deposits.
Further south, the Sinclair deposit has 1.9 million tonnes @ 2.5% Ni and this is advancing to a September commissioning. The Sinclair leases take in 40 km of ultramafic belt that is largely untested and two discoveries south of Sinclair - Skye and Stirling - are showing both near surface and significant plunge potential.
Well north of Cosmos, and north of the Wiluna gold mining camp, Xstrata Nickel is exploring the Cunyu prospect which is seen as a Voisey's Bay style mafic intrusive for nickel-copper and platinum group metals.

[Huang Chung]

And I take it you noticed Tricha that our old favourite, Western Areas, got Digger of the year.

http://www.stocknessmonster.com/news-item?S=WSA&E=ASX&N=417045

[MrDevine]

Commentary from the Sydney Morning Herald:

http://business.smh.com.au/business/counting-the-cost-of-nickels-wild-ride-20080810-3t09.html

Yep.

[tricha]

Just when I thought they are getting exceptionally cheap. Just when I was getting ready to buy some, hmm.:confused:


Nickel Plunging on Biggest Glut in 4 Years

http://www.bloomberg.com/news/2011-06-13/nickel-plunging-into-bear-market-as-expanding-glut-outstrips-record-demand.html

[evilroyrule]

thats ok, couldnt be better timing. friends of mine in the mines in oz, been a good source of info previously. apprarently nickel is next to go. they even thnking of reopening the old nickel miones in kalgoorlie.

this is a good starting pointing, anyone lese know of early NI producers please?

[shasta]

thats ok, couldnt be better timing. friends of mine in the mines in oz, been a good source of info previously. apprarently nickel is next to go. they even thnking of reopening the old nickel miones in kalgoorlie.

this is a good starting pointing, anyone lese know of early NI producers please?

MCR, PAN, MRE, MBN, WSA, are the main producing ones, throw in IGO & KZL for Nickel as other producers with Nickel projects

I like CZN in the advanced explorer ranks (JORC resource), others to watch for include MLM (Nornico project), PRW/MFC, & RXL

I like MRE as a pure Nickel/Cobalt play, plus MCR for its move to other metals as well as Nickel

[macduffy]

I still hold a few MCR - wish I didn't!

Seem to remember from my previous Ni enthusiast period that MRE is a comparatively high cost producer. Big volumes and very profitable when the PoN soars but suffers disproportionately in the downturns, compared with the likes of PAN, MCR and IGO.

I could be out of date with this but it may pay to check if anyone is interested in MRE.

[shasta]

I still hold a few MCR - wish I didn't!

Seem to remember from my previous Ni enthusiast period that MRE is a comparatively high cost producer. Big volumes and very profitable when the PoN soars but suffers disproportionately in the downturns, compared with the likes of PAN, MCR and IGO.

I could be out of date with this but it may pay to check if anyone is interested in MRE.

I mentioned MRE as Glencore owns 71% & has the offtake agreement for the Murrin Murrin Nickel/Cobalt mine. (MRE 60% of 33 - 37kt Nickel production)

Glencore was mentioned in an article on "The Australian" about a multi billion dollar takeover that would rank them alongside BHP, RIO & Vale as majors

MRE looks cheap when compared to other ASX Nickel producers (refer MRE presentation)

[tricha]

U r out of date Shasta.

IGO is and has been a great nickel producer for many years.

It has part of Tropicania, a new multi million ounce gold mine.

It has just taken out Jabiru, a very high grade zinc mine.

It has about 300 million cash.

[shasta]

U r out of date Shasta.

IGO is and has been a great nickel producer for many years.

It has part of Tropicania, a new multi million ounce gold mine.

It has just taken out Jabiru, a very high grade zinc mine.

It has about 300 million cash.

I certainly am, Thanks for the heads up, I considered IGO as a gold producer, but shall go & read the guff

Cheers

[tricha]

Just when I thought they are getting exceptionally cheap. Just when I was getting ready to buy some, hmm.:confused:


Nickel Plunging on Biggest Glut in 4 Years

http://www.bloomberg.com/news/2011-06-13/nickel-plunging-into-bear-market-as-expanding-glut-outstrips-record-demand.html

Like everything, there are two sides to the story.
This is a brief run down on Nickel.

The Charges against Big Nickel

http://www.resourceinvestor.com/News/2011/6/Pages/The-Charges-against-Big-Nickel.aspx

[macduffy]

MCR to launch an on-market buyback for up to 10% of its issued capital.

Too much cash and, seemingly, no other more attractive option to spend it. Let's see if that gives a boost to its SP!

http://asx.com.au/asxpdf/20110621/pdf/41zb4c3npw961t.pdf

[FarmerGeorge]

Hope so macduffy - my buying hasn't done much to support it!

[JBmurc]

https://www.livewiremarkets.com/wires/ev-s-will-make-nickel-a-once-in-a-generation-investment-opportunity-says-bhp

Great time to be adding a few nickel plays to the portfolio --- purchased BSX - SGQ recently two smaller end of town nickel-cobalt plays

[airedale]

I have read that each electric vehicle will use about 25 kgs of nickel. I have topped up on RXL who have good nickel and gold prospects.

[JBmurc]

I have read that each electric vehicle will use about 25 kgs of nickel. I have topped up on RXL who have good nickel and gold prospects.

Yes, I like the look of RXL great Gold Prospects very large tenements neighbouring boomtime SPX.. missed out recently @ 26c but looking at the close might well get in at this level after all

[JBmurc]

Another Ni focused company I continue to be impressed with the forward plan and value to assets is BSX -- Great BUY IMHO

Blackstone’s Scott Williamson has batteries on his mind for the Ta Khoa nickel project
On November 13, 2019, 5:08 pm

Special Report: Blackstone managing director Scott Williamson believes the future of nickel is in the burgeoning battery sector and that the company’s Ta Khoa project is ideally suited to meet this growing demand.

And there is good reason for this given that battery manufacturers have found that adding nickel to their lithium-ion batteries increases their energy density, which allows them to store more power.

“At the moment only about 5 per cent of nickel goes into batteries but going forward that will become almost 50 per cent of all nickel,” Williamson told *.

This is good news for Blackstone Minerals (ASX:BSX), which took a 12-month option in May to acquire a 90 per cent interest in the Ta Khoa project, about 160km west of Hanoi.

The project includes the Ban Phuc nickel mine, which includes processing equipment such as a 450,000-tonne-a-year concentrator that was built to Australian standards and would require little work to bring back online, a fully permitted tailings facility and a modern 250-person camp.


Ban Phuc was operated as a mechanised underground nickel mine from 2013 to 2016 and generated $US213m ($311.3m) in revenue during this period of falling nickel prices.

Blackstone’s work to date has identified a number of new nickel sulphide targets, while drilling has not only delivered broad nickel sulphide intersections but also uncovered significant platinum, palladium and gold – collectively known as platinum group elements (PGE).

Williamson believes that the most exciting part about the project is the ability to quickly move towards downstream processing.

“We’ve already got the existing nickel concentrator and we could convert the concentrate it produces into a nickel sulphate or a battery product,” he said.

“It all comes back to how quickly we can build the downstream process and that’s about a two to three-year process. So we need to do scoping studies and bankable studies.”

He pointed out that having the concentrator onsite represented over $130m of capital infrastructure already sunk into the project.



“We can focus on finding the next circa $100m to build the downstream process.”

Focusing on finished or advanced downstream products also allows Blackstone to avoid the Vietnamese government’s 20 per cent tariff on concentrates, which was introduced to incentivise mining companies to build downstream facilities.

“With nickel concentrate, you don’t get the full LME nickel price but with an advanced product, you can get better payability and sometimes even a premium to the nickel price,” Williamson added.

“We haven’t decided yet where the downstream facility will be situated – there here are several suitable locations throughout Vietnam, the question is do we do it near the port of Hai Phong, where LG is looking to build a battery factory, or at the mine gate, Hanoi, or the Son La province as the city has industrial zoning.”



Williamson also said that while the focus was primarily on the nickel, the PGE content could cover a lot of the operating costs.

“The previous owners didn’t assay for platinum, palladium and gold but we are seeing up to 1 gram per tonne,” he added.

“We still need to do the study to determine the mining method, but if it winds up being an open pit then the byproduct credit from the platinum becomes very significant.

“It will come through the same processing route. There will be a small addition to the circuit but most of it will be in the same flotation into that downstream process and you will be able to extract the PGEs.”


Next Steps
Looking ahead, Williamson said Blackstone was aiming to define a maiden resource and complete a scoping study within the next six months.

“Between now and then we have four drill rigs spinning. There are 25 targets that are untested, so at the same time that we are drilling out the main ore body, we will also be searching for new discoveries,” he said.

“There will be a dual focus of moving the mine back into production and really exploring the geology. The previous owner really didn’t do any exploration outside of the main orebody.”

He added that while the company was keen to maintain its 90 per cent interest in the mine and concentrator, it would bring in a partner to help build the downstream processing part of the project.

“The idea is, let’s say we need $100m, we find a partner that can help us fund that and they become a partner in that part of the business.”

[Joshuatree]

Thanks for sharing JB. Not sure how he gets to 50% thats 10 fold. Any idea what % of nickel is in the average EV or storage batt?

“At the moment only about 5 per cent of nickel goes into batteries but going forward that will become almost 50 per cent of all nickel,” Williamson told *.

[JBmurc]

Thanks for sharing JB. Not sure how he gets to 50% thats 10 fold. Any idea what % of nickel is in the average EV or storage batt?

“At the moment only about 5 per cent of nickel goes into batteries but going forward that will become almost 50 per cent of all nickel,” Williamson told *.

Great info on the blackstone twitter feed https://twitter.com/Blackstone_BSX

I understand Ni in batteries is planned to increase + more Battery powered autos etc

[duncan22]

GAL and CR1 both up strongly Friday on owning land in the Fraser Range next to LEG which is in a trading halt with a rumoured big find.

https://www.livewiremarkets.com/wires/liontown-timing-its-wa-lithium-project-to-catch-the-ev-wave

[JBmurc]

GAL and CR1 both up strongly Friday on owning land in the Fraser Range next to LEG which is in a trading halt with a rumoured big find.

https://www.livewiremarkets.com/wires/liontown-timing-its-wa-lithium-project-to-catch-the-ev-wave

And CWX also has some great land in the Fraser range along with a J/V with IGO

[JBmurc]

Great watch interview with BSX MD- great BUY IMHO

https://www.youtube.com/watch?time_continue=385&v=GJBjfshsaE8&feature=emb_logo

[Joshuatree]

Nickel price still dropping though -9.17 % in the last month, -2.23% last trading day.

[JBmurc]

Nickel price still dropping though -9.17 % in the last month, -2.23% last trading day.

Last I look its back up over 1.89% but yes like Copper it's been hammered by Corona virus FEARS last few weeks .. all depends how it all plays .. in BSX case they won't be producing Ni for sometime hopefully Corona is dealt with soon than later

[Scrunch]

Thanks for sharing JB. Not sure how he gets to 50% thats 10 fold. Any idea what % of nickel is in the average EV or storage batt?

“At the moment only about 5 per cent of nickel goes into batteries but going forward that will become almost 50 per cent of all nickel,” Williamson told *.

I've recently started to look for good battery component exposure options. I know i'm late to that realisation but there is an extremely strong outlook if by the 2030's EV's are majority of new cars. There's a bunch of sources saying battery component demand will grow 5-15x depending on source, start point and end point.

One of the main lithium-ion batteries is 8.1.1 NCM. Nickel @ 80%, cobalt and manganese at 10% each. The other two key bits are lithium and Graphite, and by weight graphite is the largest input. Stable rather than sharply increasing lithium supply is causing that price to go nuts. Other component parts may follow but it depends on the ease supply is increased and the amount of non battery demand. BSX certainly looks an interesting prospect in the Nickel space, although to date nickel hasn't gone balastic.

[clearasmud]

Sure but Elon Musk has I believe said that LFP (lithium iron phosphate) will be the main battery chemistry.
Hence why I invested in copper instead.
Copper demand will increase with electrification.
I recently bgt a parcel of SFR (sandfire resources) at $5.12/sh as they are in the middle of doing a big deal and appear cheap.

[Scrunch]

Page eight of the presentation below has a chart guessing at the different battery compositions, and how they are likely to grow in the future. By the 2030's LFP is forecast to be similar to the total current battery market (so there is forecast huge growth in this formulation). This April forecast by Benchmark Mineral Intelligence has the 8.1.1 composition increasing from almost nothing to about 3M MWh by 2040.

On that graph's estimate the top four chemistries would be NCM @ 8.1.1, NCM @ 6.2.2, NCM @ 5.3.2 and LFP that Clearasmud notes from Elon Musk conversations.

Given its an RNU presentation, their intension was to show all the main current formulations used a Graphite Anode (RNU of course having a planned graphite mine/processing).

https://renascor.com.au/wp-content/uploads/2021/04/20210421-Investor-Presentation-April-2021-2202477.pdf
If the link breaks in the future, the presentation date was 21 April 2021.

[greater fool]

Another angle. This from a Mn producer.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02426822-6A1052371?access_token=83ff96335c2d45a094df02a206a 39ff4


Disc: hold. SP up ~20% ytd.

[clearasmud]

Page eight of the presentation below has a chart guessing at the different battery compositions, and how they are likely to grow in the future. By the 2030's LFP is forecast to be similar to the total current battery market (so there is forecast huge growth in this formulation). This April forecast by Benchmark Mineral Intelligence has the 8.1.1 composition increasing from almost nothing to about 3M MWh by 2040.

On that graph's estimate the top four chemistries would be NCM @ 8.1.1, NCM @ 6.2.2, NCM @ 5.3.2 and LFP that Clearasmud notes from Elon Musk conversations.

Given its an RNU presentation, their intension was to show all the main current formulations used a Graphite Anode (RNU of course having a planned graphite mine/processing).

https://renascor.com.au/wp-content/uploads/2021/04/20210421-Investor-Presentation-April-2021-2202477.pdf
If the link breaks in the future, the presentation date was 21 April 2021.

That presentation is purely an indication an likely to be very wrong.
LFP apparently likes to be charged to 100% and is very stable and probably will last the life of the car. Iron and phosphorus are cheap and not supply constrained unlike nickel.
Also the cars go fast too and have good range with the blade type batteries.

[JBmurc]

[QUOTE=Scrunch;916051]I've recently started to look for good battery component exposure options. I know i'm late to that realisation but there is an extremely strong outlook if by the 2030's EV's are majority of new cars. There's a bunch of sources saying battery component demand will grow 5-15x depending on source, start point and end point.

One of the main lithium-ion batteries is 8.1.1 NCM. Nickel @ 80%, cobalt and manganese at 10% each. The other two key bits are lithium and Graphite, and by weight graphite is the largest input. Stable rather than sharply increasing lithium supply is causing that price to go nuts. Other component parts may follow but it depends on the ease supply is increased and the amount of non battery demand. BSX certainly looks an interesting prospect in the Nickel space, although to date nickel hasn't gone balastic.[/EV's are made with 6 times more minerals than ICE vehicles

Battery for 1 Tesla Model 3: 56 kg nickel, 7 kg cobalt, 6.6 kg manganese, 85 kg copper

Need 40-fold increase in prod of lithium & nickel & 20 times as much as copper, graphite, & cobalt compared to 2020 levels - IEA

[greater fool]

[QUOTE=Scrunch;916051]I've recently started to look for good battery component exposure options. I know i'm late to that realisation but there is an extremely strong outlook if by the 2030's EV's are majority of new cars. There's a bunch of sources saying battery component demand will grow 5-15x depending on source, start point and end point.

One of the main lithium-ion batteries is 8.1.1 NCM. Nickel @ 80%, cobalt and manganese at 10% each. The other two key bits are lithium and Graphite, and by weight graphite is the largest input. Stable rather than sharply increasing lithium supply is causing that price to go nuts. Other component parts may follow but it depends on the ease supply is increased and the amount of non battery demand. BSX certainly looks an interesting prospect in the Nickel space, although to date nickel hasn't gone balastic.[/EV's are made with 6 times more minerals than ICE vehicles

Battery for 1 Tesla Model 3: 56 kg nickel, 7 kg cobalt, 6.6 kg manganese, 85 kg copper

Need 40-fold increase in prod of lithium & nickel & 20 times as much as copper, graphite, & cobalt compared to 2020 levels - IEA


WHOA. Reset needed here..............

https://stockhead.com.au/energy/teslas-ditching-nickel-and-cobalt-for-lfp-batteries-heres-why-thats-important/

"Tesla’s confirmation that it will adopt lithium iron phosphate chemistry (LFP) batteries for its high volume, standard range Model 3 and Model Y electric cars marks what could be a wider shift away from the more expensive nickel cobalt aluminium (NCA) chemistry."

[pedro.nz]

13862

RMI - Resource Mining Corporation Limited - Has done very well over the last month - has been flagged 11 times on a daily momentum screening of the AX in Metastock.
(Haven't done any research so unable to comment as to why - will leave that to those that are keeping a close watch on nickel mining and market demand)

[younga]

WMG....drilling at the moment....has found nickel but waiting to see if find a lot. Results due soon. Low mrkt cap and feels like slow accumulation