Unlikely as the nickel price has continued to trend down. The Bell Potter report uses a nickel price of $24kt across FY23. By their own previous admission the NPI price trades between 60-70% of class 1 nickel.
My own reconciliation indicates ~60%. The problem is that class 1 nickel has been trading at around $20-$22kt and is currently sitting at $20kt. If this persists we will be operating off a narrow margin. Currently between $1-2kt. Thats not enough to fund growth plans. Something has to give for example divs or debt refinance. We still need to find $600M to fund the remaining share of ENC.
The SP is just go to trend down as the risks mount. As Ive said previously, I dont know how this CFO is managing this with any confidence. The financial risks are mounting and the mkt knows it.
Outperform - Macquarie, page-13
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Last
85.5¢ |
Change
0.010(1.18%) |
Mkt cap ! $3.664B | |||
| Open | High | Low | Value | Volume |
| 84.5¢ | 85.5¢ | 83.5¢ | $6.403M | 7.570M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 66269 | 85.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 85.5¢ | 127441 | 10 |
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| Last trade - 16.10pm 20/06/2024 (20 minute delay) ? |
| NIC (ASX) Chart |