Ann: The Australian Nickel Conference - Presentation, page-5

@Kerbifer - mincors contained nickel is circa 220000 , about 30% more than ours , though like us they expect to expand theirs .

The key difference is head grade , mincors is around 3.8 % ours is roughly half . Ours isn’t bad but mincors is very good . I am trying to get my head around what is likely to be the cost of production on our sort of head grade .

Mincor in their dfs forecasted around 3.30 Aud per pound cash cost with an aisc cost around 4.50 Aud . Ours won’t be as cheap given the lower head grade but would sure like to be able to guess where ours might come in .

With nickel at around 22500 usd per tonne (34000 aud) and the futures curve talking 25000 usd by 2024 , that is giving current producers like mincor who are starting to build volumes out, very good margins . Their dfs was based only on a 5 year life of mine with the intention they would get into production and drill out more . Their start up capex was only circa 70M .

Their low start up capex and low cash cost of production is very much helped by selling the concentrate into bhp Kambaldas concentrator. What we don’t know but is how much they get paid for the ore by bhp ie how much of the high nickel price bhp passes back . It’s clearly in bhps interest if they are going to concentrate process for others to favour those with high % nickel as the bang for your processing hour buck is much higher .

This is clearly what is behind the comments of determining what’s involved in going it alone ( ie building your own concentrator ) , much higher capex and open but clearly much higher returns .

I agree with you but , if they can firm up a measure and indicated level close to 200,000 tonnes of contained nickel from recent drilling , this looks very cheap still relative to mincor , even with a lower head grade . The key will be whether management can determine and execute the right strategy to unlock value for shareholders , be it doing a deal with bhp if they are interested given our head grade , going it alone , but that will involve massive capex , or positioning ourselves to simply be bought out in what will be a continuing rush for high quality nickel sulphide assets .