NORTHERN SUN MINING CORP LBEFF

RE: RE: RE: RE: Nickel Inventory at LME

[JohnEStromJr]

What's with you.  You're like a record obcessed with my buying cheap shares.  I DO NOT WANT TO BUY ONE MORE SHARE OF LIBERTY MINES - AND WILL NOT BUY ONE MORE SHARE.

Is that clear enough?   My comment could be that food is good for you and some fool [you] would argue that comment.  Let's see if I can make it more understandable to everyone BUT you.  Manufacturers make things and sell them.  Most make them for others to sell.  They often have contracts to produce those items and know just how many they will make.  It is NOT their desire to make something and hold onto it.  They are manufacturers and don't even make an item until they have an order or a contract to fill.  Once filled the item is shipped to the customer or to another entity in the production chain if theirs is a part of a larger assembly.  They do NOT warehouse  items unless they weren't able to ship them so they do not have a bunch of nickel hanging around that's already been fabricated into the finished part.  They DO keep nickel to machine, cast or otherwise make into a part.  That is called raw material and they will keep a reasonable amount of raw material so as to be able to fulfill their contracts in a timely manner but no more.  Inventory costs money and reduces profits so the inventory level is watched carefully.  That said, IF they know they have orders to fill they will make  certain they have the nickel or copper or other base metal needed. 

Nickel IS fairly cheap compared to just a couple  of years ago but there is no shortage so they don't have to keep a lot on hand.  They might, to get a better price, order enough for, say, a year with incremental shipments during that time.  They get a bit better price and the LME, mine or other seller locks in a larger sale than they might otherwise.  Most nickel users buy directly from the large miners and bypass the middlemen and get the best possible price.  They have contracts with these large miners [or refiners] and get the best price but they need to be substantial users of nickel to make it worthwhile  ot the miner.  

As for the price, it's ultimately about supply and demand but they quickly found out below $5 per lb. miners were on the edge of collapse.  Obviously, at the other end of the price spectrum miners made a fortune but when the bubble burst around the world almost everything tanked and now they are finding out that, as with other metals, there are more producers producing more than is needed so, yes, nickel IS relatively cheap and could stay cheap for many years.  I see nothing to change that  equation.  You can argue until you are blue in the face but there is NO shortage of nickel and the price IS cheap.  That said, no one is going to buy a huge amount and sit on it.  Not at this time.  I'm saying it's very cheap because much below this price and the entire mining industry is on life supports.  That is not a good thing for anyone.