Hi
Just want to let everyone know of this attractive Nickel stock i have been following. IT is also listed in london in AIM.
Project is located in the east african nickel belt, in Zambia. They have commenced development already. Zambia is a low political risk country with extremely favourable mining policies. Already over 100,000t JORC compliant resources of nickel sulphides at a grade of nearly 2%, with significant platinum credits as well. It will be a relatively simple underground mine. It plans to produce 9,000t of nickel from early 2008, with box -cut development already commenced. All approvals have been granted.
The advantage Albidon has over australian miners is the low cost of production in Africa. It will be producing nickel for only $2 USD/lb(not including platinum credits), as opposed to Mincor which is $4/lB and SMY $6USD /lb. Additionally there are a lot of tax incentives.
Blue sky is evident in the fact that they have many other anomalies in their district which have had little or no drill testing. The east african nickel belt is undervalued and under explored (much like the sister Copper belt). So the potential to increase their resources from 100,000t and grow their mine life is significant.
Current price: $1.45 currently, mkt cap is about $200m. As a low cost nickel miner it will be fine at any nickel price, whereas australian producers might struggle.
Just as a comparison, MCR has about 70,000t resources and SMY about that as well. WSA has about 90,000t resources. JBM has about 120,000t high grade, but also a lot more low grade disseminated. CSM also has about 120,000t recoverable, but mkt cap >$500m.
Even if nickel prices go down, ALB will be untouched, but it is likely SMY,MCR will get hammered due to high cost profile.
As a side note they also have uranium j/v with EVE in Zambia as well.
Just want to let everyone know of this attractive Nickel stock i have been following. IT is also listed in london in AIM.
Project is located in the east african nickel belt, in Zambia. They have commenced development already. Zambia is a low political risk country with extremely favourable mining policies. Already over 100,000t JORC compliant resources of nickel sulphides at a grade of nearly 2%, with significant platinum credits as well. It will be a relatively simple underground mine. It plans to produce 9,000t of nickel from early 2008, with box -cut development already commenced. All approvals have been granted.
The advantage Albidon has over australian miners is the low cost of production in Africa. It will be producing nickel for only $2 USD/lb(not including platinum credits), as opposed to Mincor which is $4/lB and SMY $6USD /lb. Additionally there are a lot of tax incentives.
Blue sky is evident in the fact that they have many other anomalies in their district which have had little or no drill testing. The east african nickel belt is undervalued and under explored (much like the sister Copper belt). So the potential to increase their resources from 100,000t and grow their mine life is significant.
Current price: $1.45 currently, mkt cap is about $200m. As a low cost nickel miner it will be fine at any nickel price, whereas australian producers might struggle.
Just as a comparison, MCR has about 70,000t resources and SMY about that as well. WSA has about 90,000t resources. JBM has about 120,000t high grade, but also a lot more low grade disseminated. CSM also has about 120,000t recoverable, but mkt cap >$500m.
Even if nickel prices go down, ALB will be untouched, but it is likely SMY,MCR will get hammered due to high cost profile.
As a side note they also have uranium j/v with EVE in Zambia as well.
:
