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: NOT gonna happen short term!

We know that debt financing is not an option , because there is nothing (no assets no cash flow) to securitize debt with. Nil, nada. But, no problem, that is what JV's are all about. The point is that NOT is becoming low-hanging overripe fruit for CLF picking . And the downward price impact on Refined Nickel from NPI will have no major long term impact on the pricing of Elemental Nickel at the mine level. Check out comments from Nash at Liberty. The majors including CLF are constantly hunting for secure world class deposits of high quality Ni ore. Remarkably, cheaper end stainless products will actually accelerate demand growth for elemental nickel (Oops, sorry, they probably do not want us to hear that.) And we'll continue to see Ni mines closed where they are high cost or not politically friendly. Australia for eg will se marginal closures if they actually stick with Henry. The correlation of NPI to long term downward pressure on Elemental Ni prices at the mine level is bogus. But, the big boys are telling us anything they think we will believe for a lot of good reasons. Sud refining has some crosses to bear short term , but the mines can certainly prosper.

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