I wondered when one of the NI producers would figure it out.... Best way to get the Ni price back up is shut down production for a few months and let the market move the price up..... Sometimes you can make a lot more money by doing less.
Teck figured that out when they shut down Trail operations to sell power to California back several years.... They made mre money selling that power than they did on operations producing lead / zinc. Not only that , the LME inventory got a good purging and the market got positioned for better lead and zinc prices.
Now if Xstrata was to do the same, this would put some energy back into the Ni/ cu plays. Would be good for investors and shareholders to get Ni back into the $16 to $20 range... as Canadian and Australian producers have had margins robed from the currency increases.
Take the summer off guys.... and make some major profits for the next several years!
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Nickel to gain a polish from BHP plans
13 Jun 2008 | The Australian Financial Review | Michael Vaughan and Jo Clarke
A four-month overhaul of BHP Billiton's Kalgoorlie nickel smelter in Western Australia will cost the company more than a quarter of its 2008 production from the region, providing a much-needed boost to the price of nickel.
