GREY:LBEFF - Post by User
Comment by
JohnEStromJron Dec 11, 2009 11:08pm
277 Views
Post# 16580343
RE: RE: Restaman
RE: RE: RestamanLegend
Explain to all of us your comment about "The whole picture" will you. As for nickel being higher than it was 6 months ago, it is barely higher. Look at the chart.
A year ago that was true but nickel producers started shutting down their mines, others went bankrupt and still others deferred starting up the nickel mines they had intended to start up. Ravensthorpe is one example. BHP Billiton invested $3.7 billion in Ravensthorpe and they just sold it for a mere $340 million - there are more. A year ago nickel was barely above $4/lb. and almost no one wants to mine at those rates. A year ago there was about 70,000 metric tonnes of nickel. Now there is over 143,000 tonnes of nickel - better than double. The only reason the price of nickel is as high as it is is the knowledge by those privy to the information - if they want a steady supply of nickel they'd best not destroy miner in the process - but there is no reason for increasing above that subsistence level if there are no profits for the miners unless they have to mine. Liberty Mines is one of many that have to mine as they are up to their necks in debt.