Nice try Mentalist, your logic is impeccable, unfortunately your numbers are complete and utter rubbish.
Being a geologist what your "geo mate" fails to understand is ECONOMIES OF SCALE.
Check out Canada Nickel. They're a few years ahead of WMG and have done the numbers on a deposit with even lower grades. Their Life-of-Mine All-in-Sustaining-Cost is US$1.94/lb or US$4300/t, not bad margins at todays nickel price. Because when you mine at scale, costs are fractions of what you quoted.
Yes WMG has a long way to go proving up Mulga Tank but they're also not a $200m company yet. As they continue to demonstrate broad intersections of disseminated mineralisation in an apparently flat lying body over several kms with essentially 1:1 strip ratio then perhaps they'll get there one day.
WMG Price at posting:
63.0¢ Sentiment: Buy Disclosure: Held
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