Wow ...nice price - $ 7.18

I have been told by Vale Inco management people that break even is $5.00.

China has been buying and producers have been reducing production.

Vale & USWA have extended the deadline for a new CBA until mid-July. The operation is shutdown until August.

IMHO there will be no further production at VAle Inco in 2009. The 2 sides are miles apart and neither side shows any signs of giving in.

This is not the LCBO, a gov't agency which serves the public. This is also not the old Canadian Inco who depended on the Sudbury Operations. This is CVRD Vale who have a reputation as bullies and have made public statements that they intend to reduce costs in their Nickel division.

So nickel prices should continue to rise for the rest of the year.

Once someone finds more nickel at RoF this summer, sp's will rise considerably.

If we believe the rumours, NOT has already found more nickel but it could be FWR, UC or Probe.

NOT has drilled in the SW and the NE and we have no results....should be interesting.

Have a great summer.

SN