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Nickel Soaring : Who took it all?

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So “Who took all the nickel?” The Times asked.



“Once again, there is a fever of speculation about an otherwise dull commodity and the London Metal Exchange has been forced to intervene, effectively rigging the forward nickel market in favour of struggling ‘shorts’ and denying the ‘longs’ their pound of flesh.


“The LME has little choice but to tinker if it wants to stay in business. Stocks of available nickel in LME warehouses no longer represent weeks or days of consumption but hours. The ‘shorts’ … are in dire straits—they cannot deliver the metal they owe. The price has soared to almost three times the long-term benchmark of just over $9,000 a tonne and people are talking darkly about a squeeze, about hidden stockpiles.


“Without stocks, the LME’s forward nickel contracts would have no underpinning and the exchange would have to suspend trading. But the fundamental question that is being asked is whether these commodity exchanges are merely reflecting physical supply and demand or creating their own reality …”


This is hardly the first time in recent years that paper traders have created a marketplace frenzy. As The Times wrote, “It is easy for big producers or consumers to create a temporary famine or glut by quietly shifting their own stock position.”


But when they do, the paper asked, “Is it the LME’s job to rescue a ‘short’ from losing his shirt to a more powerful ‘long?’ For the LME, the potential embarrassment of a default is growing because pension funds are now taking bets on these formerly obscure commodities.”


It’s a dicey situation for the LME, and The Times wants some accountability. “If the LME’s strange little world is becoming more visible, perhaps the answer is more visibility from investors. If there is a big stock of nickel hiding out there, should we not be told?”


@: http://www.kitcocasey.com/displayArticle.php?id=897


= = =


Companies: see advfn: http://www.advfn.com/cmn/fbb/thread.php3?id=3869875


Symbol COMPANY....... No.shsMn -Price C$Mkt.Cap : MktCap

t.N--- Inco Limited... 5 184.0 $35.00 C$6,440mn = $ 4.6Bn

t.FL-- Falconbridge... 7 177.1 $20.30 C$3,595mn = $ 2.6Bn

AAUK-- AngloAmerican.. 5 1469. $18.90 ---N/A--- = $27.8Bn

OUTOF- Outokumpo...... 9 xxxx. $ 9.31 ---N/A--- = $ ?.?Bn

WMC--- WMC Resources.. 5 282.2 $10.31 ---N/A--- = $ 2.9Bn

ca.LIM LionOre Res.... 3 167.7 $ 6.70 C$1,124mn = $ 809mn

x.TIR- Titan Resources 2 171.0 $ 0.31 A$ 53.0mn =

x.JBM- Jubilee Mines.. 1 123.0 $ 2.68 A$329.6mn =

8 co's ---Sub-Total... 37 Mines


Exploration, CAN.----- X shsMn -Price C$Mkt.Cap : MktCap

t.CNI- Canico Res..... X. 27.9 $11.95 C$333.8mn = $ 240mn

v.CZZ- Canadian Roy... X. 35.6 $ 1.92 C$ 68.3mn = $49.1mn

t.FNX- FNX Mining Co.. ?. 12.8 $ 6.97 C$ 89.2mn = $64.2mn

v.JNI- Jaguar Nickel.. X. 56.5 $ 0.82 C$ 46.3mn = $33.3mn

v.YMU- MustangMinerals X. 23.1 $ 0.57 C$ 12.2mn = $ 8.8mn

t.SGL- Scandinavian Gold X.


Exploration, AUS.----- X shsMn -Price A$Mkt.Cap : MktCap

x.IGO- IndependenceGld X. 78.0 $ 0.35 A$

x.MCR- MincorResources X. 173. A$0.57 A$ 98.6mn =

x.MPM- MPI Mines Ltd.. X. ---- A$1.24 A$108.0mn =

x.WSA- WesternAreas NL X. 76.0 A$0.48 A$ 36.5mn =

x.VRE- View Resources. X. 280. A$.066 A$ 18.5mn =

x.THX- Thundelaria.... X. 51.0 A$0.39 A$ 15.3mn =


small/illiquid .----- No.shsMn -Price A$Mkt.Cap : MktCap

x.ANL- Anaconda Nickel 3 6923m A$.095 A$658.0mn?

x.HRR- Heron Resources 3 108mn A$.165 A$ 17.8mn

x.ATM- Aneka Tambang.. 6 382mn A$0.20 A$ 76.4mn

x.AGY- Argosy Minerals 2 94.mn A$0.14 A$ 13.2mn

x.PSR- Preston Res.... 2 67.mn A$0.27 A$ 18.1mn


= =


Australia's Thundelaria (x.THX) is moving nicely ... update



Canada's Mustang Minerals (v.MUM) looks undervalued ... update : Daily-6mos


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Canada's Mustang Minerals (v.MUM) looks undervalued ... update : Daily-6mos



From MUM's Stkhse. b-board:


+ SUBJECT: RE: Nickel at 19 Year Highs Posted By: ionmetals

Post Time: 8/16/2006 12:55


Nickel at $14.15/lb US right now (about $15.80 Cdn). I think there is some real concern that the LME nickel inventory could approach zero. At this rate, nickel could average $10/lb for 2006, up from $6.69/lb last year, $6.28 in 2004, $4.37 in 2003, $3.07 in 2002, $2.70 in 2001. Anyone see a pattern here?? Mustang really is due for a significant upward re-valuation, especially once their M2 resource calculation is out - which should be any day now.


+ SUBJECT: RE: Nickel at 19 Year Highs Posted By: co2654

Post Time: 8/16/2006 15:19


"Mustang really is due for a significant upward re-valuation, especially once their M2 resource calculation is out - which should be any day now."

Yeah....that is what we keep on hearing.......


+ SUBJECT: Sucks to be an MUM Investor Posted By: Stockdog12

Post Time: 8/17/2006 09:32


The market is slowly starting to get scepticle of mum as investors are starting to wonder what the hell is up with this Co. A couple fellows I know are pis--d with the management and bailed out the other day.This is not a good sign. COME ON MUM GET SOME NEWS OUT AND GET IT OUT SOON. With the stalling of the latest report,I can only guess that it's not good ,that's why we've heard nothing.. Nickel prices are going up,up ,up every day and Mum is stagnant and now starting to drop,can only mean one thing.. I'll hang on for a bit longer.


-from: http://www.stockhouse.com/bullboards/forum...p;all=0&t=0

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That MUM chart could be set to move


+ Nickel is moving hgher,

+ MUM has a real project

+ It has been 12 months from the last top, and last time it took 12 months to put in a bottom


I OWN SOME, and made a ton in that last spike up

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