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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: aknahow who wrote (18254)	8/15/2006 11:36:17 AM
From: jpthoma1	Read Replies (1) \| Respond to of 78409

Hello George, You are right: prédict future prices is a difficult task. The "financial theory" says that you can use past prices to predict future ones. So, if you look at historical nickel prices, you can analyse the behaviour of prices in relation with demand and supply, ajust for inflation and any other important change (ex: China demand, US$ value) and make some future prediction. You can then use optimistic, realistic and negative scenarios to calculate net return of the project. But be sure that financiers will look at your negative projections and still cut 25% of the cash flows! ;o) JP