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27/07/16
23:29
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Originally posted by ccdavid
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At this present Nickel Situation of Low Ni Pr and still quite a big Stock Surplus , The way to cut
loses is to be in Care and maintenance. C & M will not burn much cash , It preserve recourses
and preserve the life of plant and equipment. That is what the creditors are doing, No Doubt
nickel will hover around maximum 4.50 to 5.50 for the rest of the year and still that price
will not justify production. It has to be at least 6.50 to justify production for all Ni Miners.
Saying that, this will eventually put pressure to major producers to give up and finally
close their mines. Then and only then will we see Ni Pr recovering to at least 7.00 and above.
It will happen middle of next year. MBN can stay C & M for a year, it will not burn much cash.
I am looking carefully of mines in C & M that could weather the storm and not get bankrupt
while the sp is very low. PAN ,MCR looks good, WSA and IGO too expensive but safe,
POS I won't dare it has no money but MBN have a good chance to weather this storm. We
were just caught up in a foul play.
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IMO, MBN can mine with nickel price at 5.5US/lb going by the COP including royalty they have disclosed, it's only a question of whether these creditors/substantial share holder with majority shares want to......nickel price of 6-7US/lb will even be better of-cause.