The following article posted in MINEWEB, Monday April 6th discusses the longer term outlook for Nickel. The article in it's entirety can be read via the following link:

BMO has cut its nickel price forecast 20% to $4.50/lb this year, advising that the price needed to balance supply with demand over the long term won't occur until 2013.

"The combination of very poor demand and insufficient production cuts are expected to pull the nickel market into a material surplus of 36kt this year, prompting BMO Capital Markets to reduce nickel price forecasts by 20% to $4.60/lb this year and by 21% to $5.50/lb in 2010.

Inventories are projected to increase for the third consecutive year in 2009, keeping prices low until 2010, BMO Capital Markets Global Commodity Strategist Bart Melek forecast.

BMO expects nicel will trend upward to $8.50/lb by 2013-the price needed to balance supply with demand over the long term. Melek advised, ‘Both producer discipline and growing consumption are expected to rebalance supply/demand conditions toward equilibrium over the longer term."

Sincerely,

AGORACOM IR