Chairmans Corner from 26 JuneMon Jun 26, 2006
Huge Merger Will Encourage Search for New Nickel Deposits
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Dear Friends:
I firmly believe that the consolidation referred to here will bring focus to the lack of significant new nickel projects. That should add value to our large and highly prospective nickel licenses in Tanzania which in my opinion represent the most attractive areas of the Kabanga/Kigera Nickel belt.
Respectfully,
Jim Sinclair
Monday June 26, 11:10 PM
Nickel gains after huge merger, copper up
LONDON, June 26 (Reuters) - Nickel gained almost two percent in London after Phelps Dodge announced a $40 billion buyout for two Canadian miners on Monday, suggesting that the company believes metals prices will stay high in the longer term, analysts said.
Phelps Dodge said it would acquire Inco and Falconbridge in a deal to form the world's largest nickel and second largest copper producer.
"From the price they are prepared to pay, you have to infer that Phelps Dodge believe that (metals) prices will stay strong. It's the only way they can justify these sorts of numbers," a London mining analyst said.
more... on the TNX web site.