LBE.V, BMC.V,
Both these junior nickel miners present great opportunities going forward. In light of worries of increased nickel LME inventories and reduced nickel LME spot prices, these stocks have stalled over the last few months. (The change in approach to McWaters also hurt LBE but this was the right decision because it will give them acces faster to the higher grade nickel at the deeper levels).
There has been some weakening demand in Europe and some substitution going on in Asia. This will help keep nickel prices from going too high. However, the overall high demand for nickel will keep the nickel prices high for at least a few years to come (not unlike many base metals).
I think now is a great time to start replenishing my holdings in nickel juniors. I like both of these companies going forward as they will be increasing production significantly over the next year. Even if nickel price pull back 20% from their highs, these companies can easily have share prices 100-150% higher from where they are now.
There are some updated research reports coming out now so I am starting to accumulate more while the prices are still low. The market is starting to wake up to these two great nickel juniors again.
I expect to see more volatility in the near future. If the LME nickel inventories can increase and spot price decrease, there could be some great opportunities to buy on the dips. But given Nickels consistent low inventories and high prices (didnt pullback like copper or zinc), I have started building up my holdings in these two great nickel juniors.
With BMC coming off hedge in July (average price they are getting right now is only 5-6 dollarsas opposed to the 22-24 dollar LME prices), BMC is an especially great value buy.
JFF7
It's better to be out wishing you were in than in wishing you were out.
"Markets can remain irrational longer than you can remain solvent". - John Maynard Keynes
