European Nickel Share Discussion Threads

[atlanticbridge] 01/5/2012 18:56

Thanks Zhoc. V.impressed with the detail :)

[vosene] 01/5/2012 18:47

zhockey,
"Analsis: Don't invest in Ni latterites!"
and yet
"been in and out of ENK for 7 years"

So it took a while to reach that conclusion then. I could well understand why a former ENK shareholder would feel downcast over its performance over the years, but I would suggest the Ni laterite story is better than you expect. A supply deficit is forecast from 2015, but opinions vary even to the extent of oversupply that may be seen this year and next. The Chinese have also said they are looking to buy projects.

I am more familiar with the numbers for HZM than ENK, and I believe HZM have said they would still be a profitable producer if Ni prices dropped to around $14000 (must double check that!), and lower than that with DNi tech. I guess ENK wouldn't be too different.

[jezza123] 01/5/2012 18:31

Well all I can think is if you know what you know and are so certain, then why aren't you seriously short?

I am afraid I am never one to be that interested in strangers offering 'friendly advice'- in this game if someone doesn't put their money where their mouth is then who cares what they are saying.

[zhockey] 01/5/2012 17:29

AB

Facts: Ni in oversupply, Ni Latterites only ever produced by HPAL.

Knowledge: Geologist

Analsis: Don't invest in Ni latterites!, ENK will struggle to get finance.

p.s. also don't buy airlines or Spanish banks!

[atlanticbridge] 01/5/2012 16:35

I'd prefer it if you backed up your chosen topic with some knowledge, analysis or facts Zhoc.

[zhockey] 01/5/2012 16:23

Jez

been in and out of ENK for 7 years. Gone downhill steeply and just giving my opinion. I would hope peeps that have negative views on stocks i hold would do the same, may save me some money!

[vosene] 01/5/2012 16:18

zhockey, everything has a price. If this isn't a buy right now then either you believe ENK will fail or a laterite project is worth nothing.

[jezza123] 01/5/2012 16:17

wow - so you go around loads of different bulletin boards asking people why they invest in stuff then do you?

you must have a lot of time on your hands bud.

[zhockey] 01/5/2012 16:14

Short EZJ and BNC, ENK not worth it!

Just interested to see why people have invested as I don't understand :)

[jezza123] 01/5/2012 16:01

so you short then zhockey?

[zhockey] 01/5/2012 14:33

Yes indeed I have!

They are looking to use Nitric acid instead of Sulpheric. As far as I know they believe opex is lower than the ENK HL/TL proces but higher capex. Not sure about the economics though TBH and they will need to prove up.

I wouldn't want to be anywhere near Nickel Latterites right now.

[vosene] 01/5/2012 11:26

zhockey, have a read up on Direct Nickel who claim to have a technology which will transform the cost profile of laterite projects. Probably another year before it is proved in a scaled up environment, but looks good so far.

[zhockey] 01/5/2012 11:19

The reality is IMO that Latterite projects are just not economical in this environment. Why invest capital in Latterites when there is idled Sulphide production capacity.

Maybe in 15, 20 years Latterites will look more attractive.

[atlanticbridge] 01/5/2012 09:27

Metex - agreed. Their strategic repositioning makes alot of sense, and has taken some pretty ballsy decisions.

Planets (Part Deux) now insight of each other.

[metex] 01/5/2012 08:19

Snippet posted today on iii....c/o drunkensailor:


I got this from Mark Hanlon

"We should be in a position to announce what we are doing with Devoli in the next few weeks.
Needless to say it has no discernable value for us and we are seeking to exit that investment.
Future projects are likely to be in the Philippines, Indonesia or other areas with similar tropical laterite geology."


Interesting....more nails....it appears....in the heap leach coffin!


But it does look like ENK doesn`t initially need to have....another large nickel laterite project of it`s own....other than Acoje and Zambales....near to it`s intended Acoje Processing Plant....because small DSO operations in their area....will probably be forced to sell their ore to ENK at Acoje....(or ENK will buy them out)....because those small DSO producers....being driven to supplying such "value-adding" processing plants like Acoje....(by probable new mining law changes in respect to DSO operations....further down the line)....won`t be big enough to raise funds....to build their own processing plants....DYOR.

[lucky_punter] 01/5/2012 07:10

Nickel explorer ENK (LON:ENK) is to build its Acoje project in the Philippines over two stages to focus on the higher grade ore first.
ENK is working towards a bankable feasibility study (BFS) for Acoje, which the company now expects to deliver at the end of September

[vosene] 30/4/2012 20:51

But is the funding void really relevant? AIM tiddlers may make noises about how they would get funded to production, but the management may be amenable to the easy way out and a low ball bid rather like Kalahari Minerals lately.
Anfield Nickel on the TSX have been open about waiting for someone to buy their Ni laterite project.
Horizonte Minerals are spinning off their gold side to be a pure nickel play and make the company ready for eventual sale.
Is the same not happening here?

[bam bam rubble] 30/4/2012 19:06

"House broker says clients shares are undervalued" ...Stop the press

Bottom line is there is a huge funding void to get this asset to mineable status, meanwhile the cash is being burned through each and every day

Cash backing
Sep 2011 10.3p/share
Dec 2011: 9.0p/share
Mar 2012: 7.9p/share
Jun 2012: 5.5p/share (est. based on forecast $9.85m cash outflow for next quarter)

[griffin4] 30/4/2012 18:44

I might just get my £23000 back,



Griff

[giant steps] 30/4/2012 14:19

... and now they want out of their 2008 $48m investment !

[zhockey] 30/4/2012 14:05

Not much, economics are economics.

I'm not sure why they would do that, but people make strange investment decisions, ENK paid £2 for TMC shares :)

[vosene] 30/4/2012 13:34

zhockey, what do you think of the theory that Montoya and D&A Income are sitting on 30% of the company with a view to forcing a sale of the project/company once BFS is complete - and therefore the fundraising will not be an issue?

[zhockey] 30/4/2012 13:29

Metex,

The only reason that this is 10p (£28M), is because they have $33M of cash.

If they spend all this on a BFS and expanded staff base the company will be worth about £8M with no cashflow and a large wage bill. The share price will be 2.8p.

They then have to raise $180M for phase 1, to raise £30M as teh equity share they would have to place 1,000,000,000 shares, yes, as Jim Rogers says "Billion with a B"

OK can someone please tell me why I'd pay 10p now for this stock? And don't say that the BFS will transform ENK because it won't, look at any number of companies that have been in this position, look at Caldag even! Post BFS what moves share prices is getting financing approved.

[metex] 30/4/2012 12:20

zhockey....measured remarks....but it does appear....that they have found a "mug or two" already....who`ve said....ok....let`s see how the world`s first atmospheric leach nickel laterite project....runs without an expensive Sulphuric Acid Plant....and then if it proves itself....you can have more money to increase production.

Today`s RNS was re-assuring....in the sense that almost all of the issues....were addressed openly.

Ok!....they didn`t come forward and admit....that because the Acoje JORC resource update....probably didn`t work out as originally planned....they now have to do more drilling....and the awaited results of that work....are probably the main reason....for the BFS delay....but they did step up to the plate....on the main issues....of the amended ECC....and Mining Law situation.

There also seemed to be a new commitment too!....to use the new ENK website....as a credible source....for ENK investors to go to....regarding the progress being made at Acoje.....and general background information.

For the first time....in a long time....one had the feeling....that the "ship" has been steadied"....and that it is....finally "starting to turn"....albeit slowly....although comments like...."analysed in detail by the Natural History Museum in London"....do tend to give a real sense....that a lot of time has gone by....in getting this far....lol....DYOR.