Highlights: • Annual primary product production of approximately 25,400 tpa nickel sulphate and 3,000 tpa cobalt sulphate (contained nickel 5,670t and contained cobalt 630t) • Annual co-product production of approximately 221,000 tpa hematite, 8,700 tpa alumina and 4,600 tpa magnesium oxide • Construction capital cost of US$297M, which includes a contingency of US$65M • Annual operating cost of A$108M (US$77M)
Parameter Value Project life 25 years Annual ore throughput 600,000 wtpa Average feed-grade Ni, Co, Fe, MgO, Al2O3 (%) Ni 1.6% Co 0.18% Fe 46% MgO 5% Al2O3 3% Ni, Co overall recovery 91% Project capital cost (Including contingency of US$65M) US$297M Average annual operating cost (Ore Supply, Transport, Processing, Refining, Royalty, Export) A$108M Nickel price US$6.50/lb Nickel sulphate premium US$2.0/lb Cobalt price US$30.00/lb Cobalt sulphate premium Nil Hematite price US$75/t Alumina price US$200/t Magnesium oxide price US$100/t AUD:USD exchange rate 0.71
Parameter Value Annual production – Nickel Sulphate hexahydrate tpa 25,400tpa (Contained nickel 5,670t) Annual production – Cobalt Sulphate heptahydrate tpa 3,000 tpa (Contained cobalt 630t) Annual production – Hematite (Iron) tpa 221,000 tpa Annual production – Alumina tpa 8,700 tpa Annual production – Magnesium Oxide tpa 4,600 tpa
Annual production – Nickel Sulphate hexahydrate
25,400tpa (Contained nickel 5,670t) x $8.5
2204 pounds in a ton x $8.5 =$18.734 x 25.400 tonnes =$475 843 600 US x 1.4 = $666 181 040 AU
Annual production – Cobalt Sulphate heptahydrate
3,000 tpa (Contained cobalt 630t) x $30
2204 pounds in a tonne x $30= $66,120 x 3000 tpa =$198 360 000 x 1.4 = 277 704 000
so the Nickel and Cobalt Sulphate alone comes in at $943 885 040 AU
This is how i read it
PM1 Price at posting:
1.7¢ Sentiment: Buy Disclosure: Held
