First Nickel Inc. FNKLF

RE: Outlook for Ni price jwallisca

[marketminer]

You are correct about selling the low grade while one can.... The reverse of that has been true for decades... thats why there is a metal shortage and why the huge LME inventories have been stripped. When Cu was selling for .80/ lb many companies high graded their deposits just to stay in business..... This low price also curtailed exploration and development of new mines... who was going to invest hundreds of millions into a marginal venture. Now the world economies have bloosmed. China has stripped the cubboard bare and more profitable prices are only the first stage of bringing a mine into production....The commodity traders seam to think there is some warehouse of projects waiting to flip the switch and provide metals as required... Couple this with the devaluation of the US dollar, and the rising costs of all building materials and labour and we have a scenario where the commodity prices of 3 years ago are just memories.... Those US dollar based prices are a thing of the past.... just converting the currency exchanges to some of the producers will not enable the return of the low Ni, Cu and oil prices in US dollar terms. $80.00 oil coming soon.... converted into Euros / Lbs/ Rupees and the cnd dollar there has hardly been a price increase over the past year. Even the Chineese have moved their currency 6% over the past year, and those currency divergences are accelerating. Kitco historical charts make this very clear. bottom of the page. https://www.kitco.com/