Yeah well going long depends on your ability to meet margin calls as per your previous post. If I was you Id be holding. My view is that MRE is priced fairly currently.
However:I know enough about the Nickel Industry and enough about MRE that I wouldnt be in this this trade. Nickel fundamentaly doesnt excite me presently due to LME stockpiles.Its the wrong time in the cycle to be playing games here in my view. This is a mature business(MRE) with very limited upside. HIPAL leech is expensive complicated and high cost. Peter Johnstone(My old Boss) has done a fantastic job managing this once seriously troubled asset. I know if a lot of you guys could walk out and see the plant patched together in some parts with temporary leak wrap you would run a mile and buy some Telstra shares the next day. I also note that the ore body has been "raided" at times, despite this it has done a very good job over the past 12 years. All the people who pressed the GO button here have left the building(so make sure you have a chair when the music stops). Anglo was sold a "PUP" by Twiggy which they have never really forgiven him for(Jamie Ogilvy lost his job ) and to my suprise theyre still holding it. Murrin is a game of musical chairs and all it would need is for example.........."A total failure of the acid plant heat exchangers"(Its happened before)and they would be offline for possibly 8-12 weeks(No production).
Twelve months ago the disscussion was can Murrin survive? it has, and thats a testement and a credit to the mine,its employees and its management. The thing about MRE is never delude yourself about the degree of risk here....its substantial. If your not intimately aware of MREs history then youre just a punter. In that case........good luck.
As an aside I want MRE to continue and to be successful. Its an important symbol of the capability of technology to extract economic mineral resources from previously problematic ores. I simply think presently there are easier ways to turn a buck and better plays out there in my view for the share market investor.
MRE Price at posting:
75.0¢ Sentiment: Hold Disclosure: Not Held
