Hello All,
While the infighting continues, I thought I would focus on what will drive demand for nickel, copper, Chromium, and all of the other metals that Noront is discovering in the Ring of Fire.
Today as I write Nickel hit $6.22 a pound after breaking the $6 barrier earlier this week. That barrier has been in place since last September. Not that our share price reflects the fact that nickel is on the rise, but like Hoov says it allows many to accumulate for much less than the strike price of options that Joseph Hamilton and Paul Parisotto receive in compensation each month. Ha ha.. suckers... They set the bar low in the first place and are paying the price in the short term.
Back to the demand for metals. My father returned from a three week trip to China this week and he shared with me what he learned while over there. Outside of the fact that there is a giant fog covering most of China, there is no shortage of cranes and building projects. While there may be a recession in the US, Canada, and parts of Europe, the rest of the world does not seem to care.
The Starwood group (Sheraton, ..) has over 80 hotels under construction, and will be opening up 40 in the next two years alone. The equivalent of a city the size of Calgary (one million people) is being built every 30 days in China, and construction is everywhere.
My contacts at a research group have told me that China's GDP is predicted to be above 6% this year. Similar GDP targets have been set for India and Russia, as well as the African Continent. And these targets were set after the market crash.
I share this as we as investors can be beaten down by the daily doom and gloom news surrounding us that impacts the psyche of the North American investor. There are not likely many people in China, India, or Russia that care what the share price of Noront is, but they do care about the price of Nickel and whether they will be able to meet their expansion plans with the present and future inventories. The Ring of Fire story may have fallen dormant the last few months, but a return to good commodity prices will make Noront a target for large companies seeking to expand their reserves.
The timing of our share price rebound cannot be predicted, but once the fuel burns out in the accumulation machine there will be fewer sellers than buyers once this does take a turn.
The world continues to turn. I can speak from experience from my trip to Europe last year that many European countries do not give a thought to what is happening in North America. For the most part they do not need us as their union grows stronger. I believe they are more interested in our hockey teams than our economic state.
That said, China is still a big customer and Canada a haven for resource exports.
The story will unfold and this company is in the right place, though the timing may not be right yet. I will continue to accumulate without having to do the CEO job to get cheap shares. Gotta love irony.
M1.
