Hi Marcus. Your figure is correct for the PFS completed in 2016, but it no longer applies.
The PFS was for a small volume scandium-only project at Sunrise, and they stated that another option was to roll up the scandium production into a larger nickel project. That is in fact what they did, and the current DFS is more timely in terms of costs; but the project is now a nickel project, with cobalt and scandium credits.
Now the new DFS does not show a co-product cost for scandium because the accounting basis is
on nickel. However there are clear C1 costs on the nickel: $4.68 per pound, before cobalt and scandium credits.
From the flow charts one can see that the opex on nickel and cobalt will be very close. There will be some
differences on account of the different chemicals and resins needed in the respective circuits.
But I think it is safe to say, the C1 co-product costs will be very near each other: $4.68 a pound.
What about the scandium ? One can see from the flow charts it requires a refinery and has a different circuit, but these are CAPEX costs. The capex is already figured in.
There will be some additional opex, because they are going to stockpile the scandium in the form of scandium hydroxide, which must be converted to scandium oxide eventually.
So what this means is that the C1 co-product costs on scandium will be very close to the nickel-cobalt C1 costs, plus some more for the conversion of scandium hydroxide to scandium oxide.
I am researching the cost for this conversion, which will be a dedicated and allocated C1 cost allocated to scandium, but I do not think it will be terribly much. For the time being, until I get some facts,
I am figuring the base metal C1s for nickel and cobalt at $5.00 a pound, and double for the scandium,
to allow for the expense to convert scandium hydroxide to scandium oxide. I understand this is very crude. I admit it is just a guess. But I am sure the C1 co-product cost on scandium oxide at Sunrise is going to be a hell of a lot lower than $400, 500, or $600 a pound.
ATTENTION BOMBER. I saw the reference to $750/lb. Very interesting, that they said the lower price was forecasted not because of increases in supply, but to incentivize faster uptake and industry utilization. This confirms my previous assertions, that CLQ can make the price whatever they need to, to stimulate off-take and adoption. So the big players will get a big carrot and a major discount to step up to the bar. CLQ will be The Boss in scandium. $750. $1500. Whatever. Incremental low-cost production in scandium will be a windfall for CLQ and a nightmare for competitors.
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