Top Gainer: Mirabela (MBN)

 Closing price  $1.75
 Change  +0.135
 % change  +8.4%


Bouncing off an annual low of $1.615 yesterday, Mirabela investors finally had something to cheer about, with the stock rising 13.5 cents, or 8.4% to be the day’s biggest gainer.

Down 20% for the year, it has been a tumultuous ride for those backing the nickel miner, with the stock stuck at low $1.60s towards the end of last year until it jumped 50% to an all-time high of $2.45 just before Christmas. It didn’t last long, however, with the stock steadily retreating over the following 6 months to an 12-month low yesterday.

MBN is an international nickel producer with a world-class nickel sulphide mine in Brazil that has a 23-year reserve life and potential to expand. It claims that it is the largest nickel sulphide project commissioned in the last decade. It is currently self-funding from existing operations & cash balance.

MBN admits that there are some challenges ahead in 2011 and beyond. While it has completed the mine pre-strip and the plant upgrade is ahead of schedule with completion expected Q3 2011, its 2011 production and cost targets under pressure. It says that there are also ramp-up challenges with contractor drilling performance and tyre availability, plus there’s the problem with the strong Aussie dollar.

You can read the company’s 21 page report at the UBS Australian Resources Conference earlier this month by clicking here.

Nonetheless, analysts are bullish on MBN’s prospects. Based on Thomson Reuters data, 73% of analysts have a buy on MBN, 27% have a hold, 0% have a sell. 


Chart: Share price over the year to 30/06/2011 versus ASX200 (XJO)

Stock code: MBN

Charts: Mirabela Nickel Limited

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Biggest Loser: Intrepid (IAU)

 Closing price  $1.42
 Change  -0.07
 % change  -4.7%


Despite being the day’s biggest loser and having lost 40% in the last two and a half months – falling from an all-time high of $2.34 on April 11 2011 – Intrepid Mines (IAU) is still up an incredible 200% for the year and 350% for the past 15 months, rising from just 23 cents in March 2010. I suppose the “stellar run” all depends on when investors got on board, with recent investors feeling the pinch.

IAU is a precious metals development and exploration company with its primary operations in Indonesia, in the Tujuh Bukit project. The main aim is gold, although it also has silver and copper assets.

Intrepid claims that its Tujuh Bukit project in Indonesia is enormous, with a gold-silver oxide resource which is currently 2.4Mozs gold and 80 Mozs silver. It also says that there is heap leach potential, plus an underlying large copper-gold-molybdenum porphyry system of 8Moz gold and 4.4B Lbs copper.

To get some in-depth information on Intrepid you can get the company’s latest technical report by clicking here.

Even with the recent bearishness there are plenty of brokers lining up to place a BUY on Intrepid, inlcuding RBS, Wellington West, Hartleys, Wilson HTM, Shaw Stockbroking and RBC.

You can read the latest Annual Report here:

Intrepid Mines – 2010 Annual Report



Chart: Share price over the year to 30/06/2011 versus ASX200 (XJO)

Stock code: IAU

Charts: Intrepid Mines Limited

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Investor Centre: Intrepid Mines Limited