Thread: Ravensthorpe Nickel To Close?

Originally Posted by CraigE

The nickel price is the only issue. We were hitting all targets set.

Correct. It depends on a much higher price than current prices and for it to stay that way. Obviously, the prognostication is that it will not recover sufficiently in the near term. The company got to the position itis by being cautious in bad times, and are continuing to do so.

John

Originally Posted by JDNSW

Correct. It depends on a much higher price than current prices and for it to stay that way. Obviously, the prognostication is that it will not recover sufficiently in the near term. The company got to the position itis by being cautious in bad times, and are continuing to do so.

John

The nickel price has been going down since early 2007. It was so overvalued back then ($70000 a tonne?), that every man and his dog was opening up a new mine.

Originally Posted by isuzurover

The nickel price has been going down since early 2007. It was so overvalued back then ($70000 a tonne?), that every man and his dog was opening up a new mine.

Yes, and all the optimists said "Oh! its only a temporary dip." Well, it probably is - depending on what you call temporary. As I said earlier, the critical thing is not the actual price of nickel, but the predicted price during the life of the mine. And it would be fair to say that the financial events of the last few months have resulted in a good few revisions of predictions, much lower than would have been prompted by the drop in price from 2007 to perhaps September last year. And there will be more of the same - anyone working in a business of any kind, but particularly a mine, with slim margins, should be getting worried.

John

John

Not good news. I think all of us in the resources sector are nervous of what's happening.

Originally Posted by isuzurover

Half our chem eng graduates hired by NW were sacked before they even started...

To think 12 months back you could hardly get one because of market demand.

Bummer! Hang in there Craig! Lucky (?) you've got 6 or maybe even 12 months. A lot can happen in that time.

It'll have a big effect in Ravy & Hopetoun. Bluey Jamieson's started building his new supermarket in Ravy and there's a few other projects that'll probably halt now.

A few people had to leave Hopey when the mine started when rents went from $100 per week to $600 per week. If a lot of the workforce leaves, then it'll quieten right down there. Maybe land will drop to $25,000 a lot like it was 10 years ago (when I should have bought one or two).

The ECCI is trying to organise a meeting with BHP. Not quite sure what they think they'll achieve.

Best of luck Craig.
Every cloud has a silver lining.
Andrew

That's a tough serve Craig, unfortunately a lot of people are going to be hurt this year, I hope you come out the other side OK

Thanks guy's,
Life goe's on I suppose. Will be a shame to have to leae Esperance.