Silk Energy Ltd SLKEF

RE: RE: One year Nickel

[whaler]

Here we go on the graphs again Victor.......... from your post:

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"So why babble about daily or monthly fluctuations in nickel prices? The effect on ISM prospects is infinitesimal. Day to day fluctuations could have an almost immediate impact on producers like LBE, and the fact that the price is US$12 and could go to US$13, when LBE mines were judged to be economically viable at US$7 is certainly of real positive impact to LBE. But for ISM, which may never earn one cent from producing nickel or selling a nickel property, don't put much importance on the Ni price today – it’s a non-issue.

Rocky, you and the rest of the Hole in the Wall Gang should get realistic on these things, and put them in perspective. You're building unrealistic expectations like you did in the post Darcel/pre Micon Report era - and remember what a crushing disappointment that was when Micon stuck a pin in your balloon. "
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Here's why, one look at two companies in the Shaw dome over the last 5 yrs. Note I have put the graphs side by side and not on top of each other. I am trying to show how alike we are and am not looking to niggle away with who's up and who's down %'s We both know we are still in the toilet and are no where near previous highs
In looking at the graphs below , one is the explorer and one a producer. I have included the 5 yr Spot Nickel price graph below the two. It is obvious that each company has enjoyed cross linkage between their perspective SP and the spot price of nickel. You can look at it day by day...... or yr by yr.





https://www.kitconet.com/charts/metals/base/spot-nickel-5y-Large.gif

Here's the link to the Nickel chart for 5 years.For some reason if I try to include the nickel prices as charts the whole lot goes blank. So nickel references will be as links not charts.

The correlation is there and that is one realistic fact that is hard to ignore or deny. You may argue that you are talking about "prospects", stating that ISM's are "infinitesimal". Hind sight is 20/20 and looking forward, how does anybody know what will or can happen in the exploration sector?

Again I see the your mention of LBE rising up and far surpassing ISM in price performance on some of your latest short term graphs that you are posting for people here. I look at one year and see a company that was not trading as of April 06/09 when the stock closed at .17 and in fact stayed not trading for some three months. After some financial help from the Chinese JJ company you guys were back on your feet trading July 13/09 at .23 cents. One year later we are now April 23/10 and you closed today at .27. Would you look at that as a 10 cent gain since the April cease trade close or a 4 cents gain since the July trade resumption?
I don't think you need me to show you the one yr graph to prove those price levels I have mentioned do you? FYI I took them off the Yahoo interactive charts and simply wrote them down after moving the cursor over the points I refer to.

So lets talk about the highs and lows in these last 5 yrs

-LBE saw a high of $4.53 April 30, 2007 and a low of .04 Nov 17/18, 2008

-ISM saw a high of $6.69 May 28,2007 and a low of .31 March 10, 2010

In both cases we both know why each of these companies saw those highs (think Nickel). Also in either case, we both saw dramatic new lows due to each company's individual circumstances and or events that were viewed by the markets as less than favourable for an explorer and for a producer of Nickel.

By illustration above, we are not so different when you look at where we have been and WRT the direct relationship to Nickel pricing as well.

https://www.kitconet.com/charts/metals/base/spot-nickel-1y-Large.gif

Lastly, let's talk about nickel going from above $4 to above $12 in this last year. Today ISM continues to explore and LBE continues to produce and even potentially increase that production. You are very right in saying that it "could have an almost positive impact". Nickel has tripled in the last year.
So when will we BOTH get to enjoy that speculative cross linkage that we saw in the past again?





April 23 2010: LBE closed at .27 and ISM closed at .37