54m market cap 46m cash, page-4

It would have been great for the company if they could have got cobalt to market soon but it doesn't look like it's gonna happen in a hurry. The recent report does state that they expect cobalt demand to double by 2015. Will supply double?

The report back in November (below) did state that the project was technically feasible and economically positive before any optimisation.

Is the company worth $5 million? Thats the difference between cash on hand and the current market cap.



The Study envisages a 550,000-650,000 tpa mine and concentrator at Kylylahti which produces copper-gold concentrate for sale to smelters and nickel-cobalt-zinc concentrate for further processing at the site of the Kemira GrowHow chemical plant at Siilinjärvi, 100km from the mine site.
The concentrate processing facility to be constructed at Siilinjärvi comprises a roaster, autoclave and hydrometallurgical plant which employ mature and established technologies. This facility would process nickel-cobalt-zinc concentrate to produce a number of high value products for sale: nickel-cobalt hydroxide, copper sulphate, zinc sulphate, iron ore fines and sulphur dioxide gas.
To date the Study indicates that the project is technically feasible and economically positive, however initial capital and operating costs at the Siilinjärvi site in particular, have been much higher than expected. In conjunction with unfavourable movements in the USD/EUR exchange rate, these costs suggest that the current configuration of the project, although generating substantial cashflow, will not give an acceptable return at long term metal prices. Therefore the company has extended the timetable for completion of the Study until the first quarter of 2008 to incorporate a review of costs and an optimisation of the project.
Vulcan Managing Director Alistair Cowden commented “There are numerous opportunities to add value through cost reduction and project enhancement that we will be pursuing. SNC and Vulcan have identified opportunities such as increasing the throughput at Siilinjärvi and modifications to the flowsheet. Work has already commenced on optimisation of various areas of the project”.
Drilling is underway at the deposit to infill and extend high grade zones within the deposit and to test for extensions to the lower limit of the deposit down plunge,
- ENDS -