Silk Energy Ltd SLKEF

RE: RE: One year Nickel

[whaler]

"However at this time, Liberty is a couple of months away from reaching mill production capacity of 1800tpd. Forecasts on this forum have speculated that this could produce cash flow of $5 million @ $11.30 Ni, before administration and debt service. The company has proven up reserves that will provide feed stock for mill capacity for a number of years. Resource estimates extend this mine life, and a recent Press Release indicates that drilling commenced last week on a very promising discovery that could add a couple of years to this mine life. The company is currently selling nickel, at accelerating rates (almost 50% mill capacity in March), on the climb to full capacity."

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Not sure what your contention is anymore Victor as you seemed to shift off the original post/s asking why we post the nickel prices everyday. I tried to show you why, based on historical crosslinkages. But you seemed focused on company SP comparisons? I also said we are both in the toilet and nowhere near where we had been in the past. A friend of mine once said it's like looking at two cars that had just been in a head-on and trying to figure out which one was is in nicer shape.

As for the commentary about LBE, that's all great too and as a speculative investment, it may turn out pretty good for you and many others fortunate enough to have bought it back when it was at these levels.  Heck nickel has gone from  +$4 to +$12 in the last year and with LBE going from .17 to .23 after a 3 month cease trade, shows that investors saw inherent value when it came back to trading.

In your overlay graph, ISM went below zero and into the negatives ( from your May 09 initial purchase) once the 43-101 was revealed and turned out to be a dissapointment for many investors hoping for more. We were at .78 pre-news(Jan 06) and .51 the day of trading post news(Jan 12). Very simple and basically the one greatest material event that explains our SP today. A further secondary and continued cause for SP drop was the "spin out and ex-dividend" of Langmuir from ISM to a separate compnay called Metal mines. So that took a 8-10 cents drop out of the stock. Who needs one year to see where we have gone? We can look to two lovely 2010 news events for taking us down and up and down. A Micon report and an attempt to unlock value........ From our post Micon high .45 to "ex-dividend" .32 to back to our last Friday close of .37

Now after a whole year of production, acceleration, and participation in rising Nickel prices, which have tripled in such time,  LBE is now up from the trade resumption price of ..23 to .27. A 4 cents gain is not too bad and you are correct as it looks better when shown graphically after being up 50% on the overlay. BTW Congratulations on your "grab basket" of nickel stocks..... May 1/09 being the .17 cease trade price as your starting point. So then it's 10 cents gained on what may have been a .17 investment had it been May 1 as in the graph. Who would have such foresight to call April/ May of 09 "ground zero" and make their initial puchases with a smattering of nickel related miners and one explorer? You really nailed it with Nickel at those lows and with LBE in a cease trade now thats gutsy.
Hopefully as we move forward that ramp up in production will bring investors in as see that LBE is hugely undervalued at .27  especially wrt what can possibly be. The chinese obviously see great value investing as they have to get the company back on it's feet and into increased production going forward.


However and again it is my opinion and observation that we are not enjoying that crosslinkage we once had in the past with LBE and ISM are we? The SP almost used to move in synch with Nickel prices.
Finally I would categorize ISM as an explorer and that Langmuir in particular is their advanced stage property. It is my opinion that LBE at this juncture is definitely a producer, and more so than an explorer.  Mills and mines say so as does "selling" it to someone

Back to topic, with nearly 20 million in cash that could be accessed fairly quickly, I don't think ISM prospects have changed at all.  We finally got our 43-101, take it or leave it. We also have Micon telling us there are other targets to go after and that could increase the tonnages. They have given us direction as well. It will cost 4 or 5 million to drill. 
 I guess there will be a "burden of proof" so to speak as we all move forward. All part of the speculation in mining and exploration. With Nickel at 2 yr highs things do look brighter.
IMHO