HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: State of the markets...a turning point perhaps??!!

State of the markets...a turning point perhaps??!!

posted on Feb 28, 2009 09:14AM

I think we have to consider the possiblity that there may be a few triggers in the market happening which should be thought of as possible influences forward moving.

Things to consider:

  1. Some of the mines are reopening.
  2. Banks are reversing their fortunes in Canada at least. Heck CIBC has a 2 billion loss turn into a 200 million profit. Thats a lot of turnaround. Of course the 2 billion loss was a result of sub prime write offs. The good news is it seems the major banks are getting past that point and moving towards profitablility again. What will really tell the tale is if we see the profits increase the next quarterly report. My guess. We will, if only by marginal amounts.
  3. We have to consider the major adjustments to company infrastructure that has happened in the last 3 months as a result of this market melt down (correction is what I think it really is to be identified as). We had a bubble effect created across the market created by overzealous bankers wanting to "give away" their money to pretty much anyone that would sign a loan. This of course resulted in outrageous credit limits on poor risk business and individual accounts. How can we think that wasn't going to burst at some time. At the same time the bursting appears to be quick, painful and has been dealt with decisively by government stimulus loans. Whether we agree with the government getting involved becomes another topic altogether. The bottom line is money is flowing into some of the worst hit business' (primarily financial and automotive it would seem to date). GM laid off over 66,000 people and counting. This sounds terrible, but we have to consider how many were through attrition as well. Heck if my work wanted me out a couple of years earlier and offered me a decent package (with a car would be lovely) I'd be goners (I can leave in 3 anyways).
  4. The wounds appear to be healing around the international community but it is important to note that we have much more press of the things going on in our own neighbourhoods (Canada and US).

I just want us to keep our minds open to the idea that a buy in of this company is most definately a possibly over the next few months. The timing is the major factor and the fact that things appear to be moving toward some market healing makes it more likely the interested parties must be more impatient to get in than they were 2 or 3 months ago. Keep you ears peeled. I'm feeling the deals should start surfacing by summer...right after the next set of good results from banks and mining communities.

All the best,

Mustangman

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