Hi Dangs
The trade war is killing econonically small DSO deposits like SJ. Unfortunately thats all we have at the moment. This means anything below 1.3% will return a low revenue.
Spot around $10k/tn makes SJ boarderline.....but
A kiss and hugs between Trump and Xi combined with the nickel inventories now nearing critical, I do believe 2019 should see nickel return to $15k/t and possibly $17k/t. Ref Bloomberg, Reuters etc many well known analysists
This shoukd see Axions revenue rise from around $35/tn currently to $50 and increase to $70 which will bring the larger lower grades in thr money.
Any BFS will need to show $50/t for reasons I have explained (management)
Once production starts a quick revenue stream should conclude early, around 8 weeks from mining. The issue I see is a unproven barge ramp and davit loading could create a bottleneck to acheive 2mtpa.
For us Lters that were lucky enough to have some 10 yr options via placements this could be worthwhile holding but unfortunately the constant dilution and the no feasability data from these BOD just keeps extending those goals.
Cheers
AVQ Price at posting:
9.1¢ Sentiment: None Disclosure: Held
