Agoracom: Small Cap Investment - Noront Resources

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)

Reply New Message

Back To Forum List View

JDR

Rank: Vice President [?]

Points: 867 [?]

Votes: 48 Score: 3.6 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

Some factors to consider

posted on Nov 27, 2013 09:27AM

Hello All,

It's been a while since my last post, but I'm still holding. In fact I am buying regularly. Like everyone else I am dismayed with the share price, however I am pleased with the progression of the company.

Here are some thoughts as to what is holding back right now and my mid-term view of those factors:

Nickel Price- Currently the price of Nickel is down in the dumps. At the current price of $6.10 it's about $3 off the price provided for in the Feasibility Study. As per a chart in Noront's presentation each $1 drop in the price of Nickel shave off $100million from the NPV of the Eagle's Nest Project. As per the Feasibility Study at $9.30 the NPV of Eagle's Nest is $500 million. With the current price of Nickel the NPV of the project is $200 million.

However, 2014 IMO will bring some relief to the price of nickel. Part of the current problem is Indonesia has place a ban on ore exports starting 2014. In preparation of this, massive amount of low grade nickel ore is being exported, thus leading to overproduction. This low grade ore is used of Nickel Pig Iron production in China. In 2014 this will stop and once stockpiles are used, there nickel will be in balance and in a few years in a deficit. By the time Eagle's Nest is in production Nickel should be well above $9.30. I see it at $8 with a year and that's went the market will start to look at Nickel plays again.

Another game changer here is the presence of more nickel. Eagle's Nest Feasibility study is based on the minerals that have been proven not what is inferred. We all know that there is plenty more nickel in Eagle's Nest however the prohibitive cost of drilling did not allow for more drilling. As per Allan Coutt's frequent comments as of late, there is more drilling in store, but I believe Noront is waiting until they can do that cost effectively, which is probably when there is more roads or a ramp.

I thought I would pose these thoughts as the infrastructure seems to be on the horizon and these are some other factors that are at play, but yet not frequently discussed.