MRE should breakout. With nickel now trading at US$7.60/lb this...

MRE should breakout.
With nickel now trading at US$7.60/lb this means that Minara is making some US$2.60/lb profit.


"We have achieved a real culture of cost control across all levels of the Company which has contributed to achieving a C1 cash cost of US$4.99/lb nickel in the June 2009 half year."

Looking forward, with current costs of around US$5.00/lb and LME price of $7.60/lb and 30,000 tons of production and an exchange rate of 82 cents.
This means an annual profit of AUD $200 million.

What's wrong with the market don't shareholders realise this. The shareprice of MRE in March 2006 when the price of Ni was at US$7.60/lb it was around $2.50.
If the price of nickel moves up just another US$1.00 /lb Minara will make extra profit of $80 million pa.
That's $280 million profit pa.

To me it just goes to show how stupid most investors are.