Momentum has returned to the resource sector with price rises in nickel (+45% from Jan), palladium (+14% from Feb), tin (+8% since Jan), copper (+5% from...

Momentum has returned to the resource sector with price rises in nickel (+45% from Jan), palladium (+14% from Feb), tin (+8% since Jan), copper (+5% from March) and zinc (+5% from March). Nickel is the shining light. Only six months ago the market had nickel as the most unloved commodity with forecast surpluses for several years. The Indonesian ban has reversed that with most analysts now forecasting deficits for the next few years with continued price rises. Our preferred nickel plays are Panoramic Resources and Poseidon Nickel. Panoramic is a significant producer at ~22ktpa of Ni (in ore and concentrate) and is currently generating over $5M per month in free cashflow. Poseidon Nickel is our preferred emerging play with its Mt Windarra project in Western Australia. Poseidon is in talks with third parties for potential toll treatment which could see nickel production recommence at Mt Windarra later this year.