Changes in Nickel Prices
If we are going to produce 200,000 tonnes this year, and if nickel stays at it's current 10.65 a pound, although technically at this breakout level there is not much stopping nickel from heading higher especially with stockpiles diminishing. FleeingGrandich made the prediction that Ni prices were going down so hopefully the stock market isn't headed down 5 percent either, although it wouldn't likely beat up UMJ very much anyway.
But back to my assumption that we can make the 200,000 tonnes and that nickel prices stay the same UMJ will make 1.5 million pounds of nickel at a breakeven cost of 7.50 that puts a profit at 2.40 copper on just the nickel at 4.5 million. since we will produce 1.5 million pounds of copper at a breakeven 2.40 there will be an additional profit of 1.5 million plus gold, platinum, cobalt and palladium. So 4 million is likely based on 9 dollar nickel and 3 dollar copper. Yes I do know it is good to be conservative, but the total value on share net for UMJ is 3 billion at todays prices, and they are likely going to earn their entire market cap.
So I am long and strong. Sooner or later the metal price may drive me out, or I will be able to retire a little bit earlier.