don't know about that Gavin .... my takeaways from the announc:...

don't know about that Gavin ....

my takeaways from the announc:

1. C&M cost if no flooding - 6m p.a.
2. if allowed to partially flood - 2 - 2.5m p.a. (and this gives them 17 odd months before all levels in Mittel are underwater.....
3. opex - Mittel = A 6.20 , Durk = A 5.42 (payable!) - ie Mittel being deeper needs a higher Ni price, despite its lower upfront capital!)
4. the durkin plan allows them to access other smaller depoits (otter /mcmahn / geralty / etc) - which HAS NOT been incld in the NPV analysis .....
5. they used 10% disc rate (normally one uses 8%).....
6. longhole open stoping - rather than airleg ......basically move more dirt, at the expense of grade...

gold is a sideshow - they did state - "we have received offers" .....hopefully they can retain a carried interest (as it would provide some cash during this current period).....

very roughly - if one uses 8% disc rate, then "restart" would be circa 15-16k A$/T .......(ie only 6m initial for BO1/BO2). this is probably what "upset" mr market .......I also note that the resource number doesn't incld the plates between bo1/bo2 .....

ie - it looks like they have given a worst case scenario!

as with PAN - they acknowledge - the BHP OTCPA expires Feb 2019 .....and will need to be renegiaoted !

as you said Gav, we will be waiting for a more reasonable Ni price ...

I expect the stock will come back a little bit in the short term

rgds
V_H