I hope this guy is right...it should be right in time for our full production its from Kitco.com
Mincor says nickel prices could soar
September 18, 2008 - 3:13PM
Mincor Resources NL, Australia's third largest listed nickel producer, says the price of the commodity could "go through the roof" in two years if large laterite projects are deemed uneconomical and deferred.
The nickel price has declined from its record high of $US51,800 per tonne in May 2007 on the London Metals Exchange, and is currently trading around $US17,500 per tonne, equivalent to about $US7.90 per pound.
Mincor managing director David Moore said the low nickel price and the higher cost of sulphur - used in the processing of some nickel ores - could prompt companies to defer the development of planned low-grade laterite projects.
"I don't find it hard to envisage a situation in two years where we're running out of nickel and prices go through the roof," Mr Moore told a business lunch in Melbourne.
Mr Moore said in the "near-term" the nickel price could reach between $US8 per pound and $US10 per pound, but could rise sharply early next year "as this bout of nervousness subsides".
Mincor operates seven mines in the Kambalda region of Western Australia and produced 19,000 tonnes of nickel in ore during the 12 months to June 30.
Mr Moore said the company has managed to reduce its cash costs to below $A6 per pound of payable nickel and the group was making "pretty good money at these nickel prices".
Mincor, which delivered a net profit of $64 million for 2007/08, is targeting output of between 19,500 and 20,500 tonnes of nickel metal in ore this financial year.
Mincor shares were down five cents at $1.065 in a weaker broader market at 1458 AEST.
