The Transcript In case there's any problem with the link to beerbelly4's transcript, it is reproduced below. This is more hard to believe every time I read it. There was a lesson to be learned here, all this enthusiasm and innuendos about takeover - and within days of when he dumped some of his shares for $6 plus! Classy? Showing Good Judgement?
Transcript - Randy Miller interview [courtesy beerbelly4 5/3/2007 4:47:37 PM]
Interviewer: Well the price of nickel has been surging, hitting record levels in recent weeks, it has been rising steadily amid concerns whether producers can keep up with demand and that has investors looking for the next big play. Inspiration Mining is developing a nickel prospect in Timmins Ontario. The Company's stock has risen nearly 750% in the last year. For more on the company as well as the broader nickel landscape which is certainly a focus this morning I am joined by the company's president Randy Miller for today's Power Breakfast - Good Morning!
Randy - Good Morning
Interviewer: I have to ask you first of all you are a junior player but you gotta be watching the big guys as well and there is a lot of news this morning surrounding Lion Ore and the bidding war that is heating up now - how do you see it all playing out?
Randy: well - Norilsk put out a new bid and Xstrata has a mandate to double their production by 2012 we know that, it was released. I believe that they'll probably come back with a better bid...but ah...
Interviewer: You think that Xstrata has to come back with a better offer...
Randy: I think so...that's my opinion...
Interviewer: and ultimately, this is pure speculation obviously but do you see Xstrata being the likely winner in this?
Randy: ah yes I do..
Interviewer (chuckling): Based on what, just sheer determination?
Randy: Based on their mandate to double their production by 2012, so how else do you double production except by acquisition?
Interviewer: You certainly are in an industry that is benefiting from strong fundamentals, I think that is fair to say. I want to ask you a little bit about the property that you are developing in Timmins Ontario. It is not a new property, it was explored in fact originally by Inco and Noranda...I think a joint venture...
Randy: Yeah that's right
Interviewer: What makes you think there's something there that they didn't get out?
Randy: Well it was originally an Inco/Noranda joint venture like you said, Noranda owned it, they spun it off to a company called Timmins Nickel which was public on the TSX in the early 90's, and basically they went bankrupt because of bad nickel price, bad luck and bad management I guess..a combination of all three...and they left behind just a whole...they didn't fully develop the property at all...
Interviewer: So what do you suspect is down there and when will you know for sure?
Randy: Well we've done a lot of drilling, we've been drilling for almost 2 years now, we started drilling in the summer of 2005, and we've been coming out with all kinds of great results, we published a news release just yesterday I think or the day before, we've been publishing news releases all along, but we're finding a lot of nickel in the ground and some great assays, you know some great numbers..so ah...
Interviewer: Are you ready to begin mining or when will the site be ready for mining?
Randy: We're not ready for mining yet, we're still in the exploration stage, we're going to an advanced exploration stage which is in the works now, and as far as the mining part, we're not exactly miners, we're more explorationists, so one of two things will happen, either we'll do a joint venture with somebody and start producing, or someone will just buy us out...
Interviewer: yeah..
Randy: Like an Xstrata...they happen to be...you know..(hesitating)...well that's speculation...
Interviewer You have anticipated my next question which is are you waiting in fact to be taken out by a player, would Xstrata be the obvious one...
Randy (laughing nervously): Well their smelter is 20 miles from where we are drilling, Sudbury is not far from Timmins...so yeah they would be but there are a lot of other players out there that are looking for nickel also...
Interviewer: Has Xstrata approached you at all?
Randy: Not formally no...
Interviewer: What does that mean?
Randy: Well we just had the PDAC just recently in the first week of March and we had a lot of visitors to our booth...but there's nothing formal..
Interviewer: Ok but some visitors from Xstrata is what you are saying...
Randy: there's been visitors from various mining companies...
Interviewer: What's your cash position like, do you need someone to make some sort of a play for you or do you have enough cash to keep drilling on your own?
Randy: We've got a lot of cash in the bank, we've got about $12 - $14 million in cash, we just closed on a private placement right now that's worth about $6 million, we don't really need any money to keep drilling, we can drill for the next 2 to 3 years without a problem, that being said we are looking at doing advanced exploration, there's a ramp that goes down to the ore body right now, so we are looking at dewatering that, and going to an advanced exploration stage, and ah..things should heat up pretty good...
Interviewer: all right
Randy: I mean the stock chart looks pretty good as it is...
Interviewer: 750% rally is looking pretty good, funny one to ask a president but do you see more upside?
Randy: I see a lot more upside, I think we are just scratching the surface here, seriously...the nickel market being what it is the supply/demand curve is way out of whack, and we have a lot of nickel in a great location...
Interviewer: All right, we'll leave it there Randy...thanks for coming in this morning...
beerbelly4 Editor's Note: ISM closes today at $5.95 - waiting for our Friday price explosion! We're just scratching the surface everyone!!! BEER
At least our intellectual executive showed a tiny bit of restraint, he ended his surface scratching with BEER, not CHAMPAGNE.