Nickel - Major Correction, where to next ?

[kura]

Ive just put some dollars down on MBN (Mirabela Nickel) after reading some positive reports on them, anyone know much about them ?

[wns]

Quick question on MCR's second qtr report back on 30th Jan...

In the hedging statement it mentions they have forward sold 5,352 tonnes of payable nickel metal which represents approx 30% of their budgeted production for the period (Jan 2006 - March 2008).
So that would mean 17,840 tonnes of budgeted production over the next 2.25 years. Yet they are shooting for approx 13,000 t this financial year -> at least 29,000 t over the next 2.25 years. Is that a discrepancy or am I missing something? Sorry if its a simple question.

[tricha]

WNS - The hedging % must be a discrepancy, I'm picking Mincor should go closer too 14,000 tons of nickel ( if u take in account this quarters result) than the 13,000 they have predicted.

And Mariners is now into full swing, so even more Nickel.

Nickel close to $21,000 oz a ton again, lets hope it stays above $20,000 for the next 6 months.

Pity their extensive gold drilling turned up nothing!

As far as Mirabela Nickel, I've never heard of them. Can't comment.

[}]

[SEC]

Nickel smashed through $7/lb overnight!! I wonder if that finally gets the analysts which have been asleep at heir job to finally start upgrading the Nico's.

SEC

[SEC]

Well that was short lived. Price was basically back to where it was two days ago but I'll put money on the Nico's being lower than they were two days ago. The market never seems to adjust properly in the short term - always presenting tading opportunities.

SEC

[wns]

Annoucement today from MCR...

Antofagasta are making an off-market bid for Tethyan Copper @ $1.20 per share and Mincor have entered into a pre-bid acceptance agreement whereby they will transfer their 12,557,566 Tethyan options to Antofagasta (subject to a number of things) for which MCR receives net amount of $13.185m ($1.20 bid price - $0.15 exercise price = $1.05 per option)

The agreement also allows MCR to benefit fully from any other superior offers for Tethyan. There's more to it but that's some main points.

MCR have certainly done well out of their investment in Tethyan.

I'm assuming if the deal goes through this financial year then this adds $13.185m NPBT to MCR's profit result for 05-06?

I have recently bought some MCR.

[SEC]

quote:Originally posted by wns

I'm assuming if the deal goes through this financial year then this adds $13.185m NPBT to MCR's profit result for 05-06?

Or the NPAT equivalent of 4.8cps. Since MCR has no debt this could be returned to shareholders or used for a on-market buyback. The market has slowly realised over the past couple of days that MCR is in for a nice windfall here.

SEC

[pago]

hi sec,i saw 6c per share upside,the market showed 1/5c.thats the market right now,it will change in a few weeks,perhaps mcr may do a special divy,cheers pago.

[tricha]

Well all good in the Nickel corner and will remain so if the price stays over $19,000 a ton OZ.
All doing extremely well.

Mincor being the dog of the field as far as price goes, but what a great report out yesterday.

The selling is still there, but finally the price is moving north again and it should continue for a while yet.

1 - 2 cents a share dividend.

2 - On track for 13,000 tons plus, I'm picking 14,000

3 - costs coming down this quarter.

4 - Another resource upgrade coming.

5 - If the nickel price stays up, expect 20 million profit 2nd half.
Already 2 months gone with $20,000 a ton OZ. ( 5 cents end of year dividend is on the cards)

6 - And of course the 13 million cash bonus care of TYC options.
Thanks to Mr Moore, who is a very astute businessman. Expect a lot more to come from him.

Why isn't it at a dollar now ?? Institutions like AMP selling, but I managed to pick up more at 64.5 cents.
Bless the institutions souls for giving away shares at a discounts.

Cheers

[JBmurc]

this is from wise-owl -30c sounds good to me
MCR is also a very strong buy 12month target 85c+



AGM Spec Buy Allegiance Mining
NL

12 Month Price Target $0.30
Proven management team with a track
record of success.
Successful $7.2m capital raising in
December was oversubscribed with
strong institutional support.
Low cost mineralisation structure is
simple to extract and easily converted
into nickel concentrate.
Improving outlook for nickel prices.
Institutional registrar includes the highly
regarded Lion Selection Group (10.5%).
Stock has emerged from a triangle
pattern to form a bullish trend.
Summary

Background
Allegiance Mining NL (AGM) is an Australia-based mineral exploration company
that has discovered a number of high quality nickel sulfide deposits in Tasmania. A
key ore body and focus of attention for the company is a medium-sized nickel
deposit of 7.7 million tones grading 1.5% nickel over two deposits: Viking and
Avebury.
Investment Summary
AGM is moving into a crucial time in its life cycle as it gears up to start production
of a world class nickel concentrate in late 2006. Management has indicated that
the mine is likely to reach capacity at almost double the initial 5,700tpa of
concentrate that the mines feasibility study was based on to show the mine as
viable. Exceeding these early feasibility targets and further upgrades in the
resource base through exploration, are both likely to be key share price drivers.
An experienced management team, strong funding support and an improving
outlook for the nickel price all point to a potential re-rating in the stock price.
Management
Anthony W. Howland-Rose Chairman of the Board
Anthony is a qualified geophysicist who has contributed to many major discoveries in
Australia including the Mt Windara and South Mt Keith nickel deposit in Western Australia,
the Elura Lead Zinc Deposit in New South Wales and Sandy Flat Redbank Copper Project.
Ian Levy Chief Executive Officer
Mr Levy is a well-known mining geologist and mineral economist with over 25 years
industry experience in mining production companies including WMC, Pancontinental and
Gympie Gold. Mr Levy also contributed to the highly successful Kundana gold mine of
similar design and structure to Allegiance's Viking Mine.
Operating Performance
AGM has an enviable track record of being able to raise funding for its projects relatively
easily with capital raisings often fully or even oversubscribed. During the 6 months to 30
June 2005 the company raised $6.3m via a share placement at 11.6c and $2.14m via a
Shareholder Purchase Plan to facilitate a feasibility study and preconstruction work. A
further $7.2m was raised by Allegiance Mining in December ’05 through an on market
placement at 15c. These funds are currently being used to support exploration drilling on
the Burbank project, underground drilling to extend Avebury Mine, the improvement of
roads, and connection of the mine to grid power.
Recent resource estimates indicate a resource of 7.7Mt @ 1.23%Ni for 650m with a
further 3kms showing promising exploration potential.
Growth/Value Story
AGM is an exploration company on the verge of becoming an operational mine – current
schedules show first production starting in late 2006. A feasibility study based on
production of 5,700tpa has been completed and proven the mine to be economically
viable. Management has indicated a high likelihood that the mine will be able to reach
capacity at closer to 10,000tpa as the resource base expands. Key share price drivers
include, AGM moving successfully to production and confirmation of a higher than
expected output. Also noteworthy is that the ore to be mined is primarily co****-grained
pentlandite, the structure of which allows for simple low cost mining and treatment. The
very high-grade concentrates that can be extracted from this structure are expected to
set a new global benchmark with concentration values exceeding 20%.
A shift in expectations toward higher nickel prices is also starting to emerg