Albidon ahead of budget

23/07/2008 Robert Tyerman

Miner Albidon says nickel production at Munali in Zambia has exceeded budget, for delivery to China.

Quoted on AIM and based in Western Australia, Albidon says Munali, which it wholly owns and is 60 km south of the Zambian capital, Lusaka, has produced more than 100,000 tonnes of ore at 0.7 to 0.8 per cent nickel since going into production in the first quarter of this year. The company says sustaining this trend will allow it to ramp up production to a target 1.2 million tonnes a year.

Albidon, which also has a variety of uranium and other mineral interests in Africa, says a stockpile of nickel, copper, cobalt and platinum group metals concentrate is being built for ‘mine gate’ sale to China’s Jinchuan Group, the biggest nickel producer in Asia. Recommended by Growth Company Investor at 37p two years ago, and again at 83p last August, Albidon shares hit 216.5p in May and now trade at 139.5p, up 1.5p this morning, at which price they value the company at nearly £225 million and are likely to fare better than several sector peers.

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