I thought it was obvious since the Scoping Study that there was relatively little value in the 4-6mtpa upsteam concentrator without the downstream. There's still some value in it, especially if Ni sticks around 20k$/t, but most of the value is delivered via the downstream.
Which is why Scott has chosen a two-pronged approach to deliver value.
- Building an inventory of MSVs and using the existing concentrator. It's a much more effective use of capital. - Decoupling the downstream so it can go ahead regardless.
I actually like that they are willing to shift strategies if necessary. It shows they are quick on their feet and are constantly thinking about how to get the most out of leveraging their resource.
They just have to be careful not to overextend. I mean, sure, building 4 × 200ktpa autoclaves sounds amazing but that necessitates a ton of expertise, capital and time. Leveraging Ecopro's chemical know-how for the first one was much safer but with lower potential.
By building their own pilot plant and trying to go big, this becomes a much higher risk / higher return proposition.
Not that it's a bad thing, just a different company now and it will mostly come down to execution.
BSX Price at posting:
52.0¢ Sentiment: Buy Disclosure: Held
