I know the C1 costs are low, but I guess I was just underwhelmed in the HY last Feb as to the true bottom line CF,profits and total costs.
These high grade deposits might have commesurately low C1 costs, but the capex/lb is commesurate with depth (without pre-existing underground infrastructure as occurs at Kambalda). The concentrator is also a bottleneck (and cost), plus the financing costs /lb was a shocker. Hanna seems good, but wary of the directors.
This is why I can't see this as a JBM, and why I prefer just to stick by IGO atm, where Moran is likely to be more profitable imo than spotted quoll or FF.
I do follow WSA as it is a well endowed patch of dirt, but given past experience with nickel stocks it and others except IGO are likely to go in my trading portfolio in future, rather than into my investment portfolio.
With a pigmetal ceiling on pon I am not rushing for MCR,PAN,MBN either. Gone are the days of metal menageries for me. Currently only select bottom drawer investments (two stocks)in mining.
EL
WSA Price at posting:
$5.47 Sentiment: None Disclosure: Not Held
