Tide has turned...18 Mar 2009 10:02
There was a lot of caution by the "City" regarding ENK, however, the tide has turned, and with ENK's unique extraction model will now benefit. The long drawn out forestry permit debacle lay heavily on the share price. And with future funding no longer an issue looks like all the building blocks are in place. The only dampners are that depressed Ni prices and climbing production costs. With the Chinese not only prepared to underwrite the funding, however this has not been ratified and could still flounder, but I do not think so, of the vast Caldag resource but it has contracted to buy the Ni output from late 2010. With Ni estimates of $6/lb, current $4.5/lb, whereas the Heap Leach technology costs around $2.10/lb. Net Present Value (npv) of Caldag is $207Mns representing some 40p/share, this does not take into account ENK's projects in the Phillipines and or Albania. Mark my words ENK will rebound and look undervalued and out of favour for now but will increase shareholder value looking medium term.