Interesting little company. Did a series of asset swops to leave them with half of the 4th largest Nickel deposit in the world.
The deposit itself is in the Philippines has been known about for 30 years but due to low prices and lack of demand in the Far East it was never exploited. With the explosion in demand from India and China the nickel price has climbed from $2 to $6.50 but oddly enough is still considered low.
The final approval stage for exploitation is just about to be approved and extraction will begin. The company already has one contract with a Japanese smelter and is in discussions with smelters in a series of countries.
Nothing clever about the operation, as the ore is of sufficiently high grade, they dig it up and ship it out. Infrastrucure is already in place for operation.
TMC is currently priced at 18m, the initial Japanese contract is worth 4m and each additional contract will hopefully be at this level or greater.
Final approval turns the company into a producer and each additional contract simply increases their size.
The management is tight with cash and has some good quality mining skills onboard.
The Philippine government is fast tracking the final approval and the company says it expects it shortly.
One to hold for approval and through the series of RNS's as more contracts are won. Company should be worth 50m in 6 months and 100m in 12-18 months.
Buy it, ignore it, just pointing this one out.

can anyone read charts? have had a look at the 25 and 200dma and this co looks like it is below the 25 dma and therefore cheap but i believe may just be a bad generalisation on my part. am looking to top in these but trying to get my timing right. any hints on what to look for in the charts.
Alex

the basis of your logic is incorrect ..... however, sp is now touching on 50 dma which should provide some support and perhaps give cause for a rally ..... rsi is also now undemanding

Cynic,

Am i looking for a rsi of 70+ as a reasonable guide to buying?
I keep reading books but noone puts in it laymans' terms

Alex

rsi is a moving average, but i am not entirely sure how it is calculated or relative to exactly what! .... howver, the principle is that when the line is above the red, it is technically o'bought, and below the green o'sold ..... it's just an indicator of share strength rather than a true signal of whether or not to buy.

more important, to chart followers at least, are the daily moving averages (dma), the 50 and 200 being generally more important than 25 ..... on the way, up they often create a resistance, and conversely, on the way down, a support.

trading volume and impetus (surely no explanation required) are the other useful.

TMC price has probably drifted through lack of further news rather than anything fundamental, so short term holders have taken their money out.

PTH who posts regularly is a much more sophisticated chart creator and reader than I!

Cynic,
thanks for your insight. greatly valued as i learn different ways to try and pick shares. must be better than the pin in a page.
Alex

Robert, DO NOT buy or sell a stock beacuse the RSI is in oversold or overbought territory, it can remain in both for a considerable period of time whilst either continuing to gain or lose value.

Basicaly the Relative Strength Index is a measurement of the average of x days up closes and x days down closes and produces the Relative Strenght of a stock.

What you should be looking for are swing failures and divergences between the RSI and SP. Rather than I trying to explain, Google RSI and you will find some excellent explanations.

pth

whats the verdict here? now fallen through both 25 and 50 day averages, thought the recent news would have provided good support...

not pleased to see it, though i am still (just) in profit ...... however, i see no reason to jump ship and certainly volume is light

Too far too quick syndrome!! too much profit on the table for lots, even at these prices, if you bought at 110-120 and added at 200, you can see it's tempting to bank and wait, the cumulative effect is now kicking in. My theory was a drop to 350 where another traunch jumped in, if these also jump ship we could see back to sub 300p before we move forward. Ironically these should still be destined for 1000p + but new entry point is difficult to know, the next news flow should kick start it, patience is what's required?

Nickel price fall to US$35000 per ton may also have something to do with weakening sp. Quarterly progress report due within the next few days.

sp still fdalling quite sharply, which is annoying as volume still light and no goods reason other than probable profit-taking ...... i would guess some sort of floor at about 345 or perhaps as low as 300, being where sp was prior to the RNS

500p is not on the cards now.

no reason why not, though not if you were expecting that to happen this week .... some peeps have expectations of much greater than that, though time will tell whether or not that is ludicrously over-optimistic

Maybe 500p is over optimistic, I agree

good prediction in my post 651 ....... "i would guess some sort of floor at about 345 or perhaps as low as 300, being where sp was prior to the RNS" ...... as this morning it has bounced from almost excatly that to (currently) 376/380 ...... big Q of course is whether or not sp will continue to recover

http://www.resourceinvestor.com/pebble.asp?relid=33851


Low Prices Force Nickel Pig Iron Producers to Cut Production

By Erik Dahl

13 Jul 2007 at 10:40 AM GMT-04:00


SHANGHAI (Interfax-China) -- China's nickel pig iron producers have been forced to either cut or suspend production due to recent low prices and decreased demand from downstream stainless steel mills, industry.....................................


.

Updates due shortly from TMC.Berong currently getting $101 pwt,costs believed to be about $15,on 1m tons might equate to profits of $75m this yr,probably nil tax charge bcos of high capex.TMC share about 20m,eps around 69 for this yr,nxt yr production to treble but some tax.Further out cld be producing 10m tons of ore pa by 2010 for 150k tons of Ni pa & smelting it all themselves or with jvs.Have already announced a smelter to treat 1.47m tons of ore.At Ni price of $15000 that wld equate to a cashflow for Berong of $2bn+ pa on the 150k tons.

Should say my estimates come from Phillipines mining engineer.Atlas produces Quarterly figs which are due mid August,go to www.pse.org ticker is AT.They seem to have received about $5.5m in Q1 from their 25% of Berong sales but cannot tell how much ore that covers.Q2 should be much more helpful

Looking at your post oilyrag re profits,its worth remembering that the ore is only 0.5m down so costs are very low indeed.Note also that the FOB price China is $208 pwt,with shipping costs at about $50 pwt from Phillipines to China,someone is still making a big profit at $101 FOB Phillipines!

Yes Mike Atlas Conolidated Mining a 25% shareholder in