I am stil buying BMC. The PR by SMY is obviously driving some to sell their BMC even though the 10% reduced production is for the Sally May project (not the JV that BMC is involved in). Mostly guilty by association, I guess.
The forecast for the Lanfranchi JV project (8000 tonnes) that BMC is a oartner in is less than Sally Malay was projecting earlier but is still in line with what Capital Research (7500 tonnes) and Versant (7500 tonnes) are projecting. It looks ike Sally Malay is not very good at under promising and over delivering.
The Sally Malay news does not take much away from the real story. That production for BMC is projected to go up 45% in the next year at the Lanfranci project and that the hedge (at an average of $5.66) ends in July. At today's $23.00 nickel price that is an increase of over 300% more revenue just on the price. Add on top of that the 45% increase in production and you have a lot of increase in value going forward.
However, your right that Moly and Zinc look really attractive right now. Copper is looking real good on the inventory side as well (my QUA warrants (copper) are going up much more quickly than they should but I am not complaining). If only there weren't so many good possibilities!
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
