CLQ vs. NZC

CLQ:
0.80% Ni, 0.14% Co, 400 ppm Scandium (0.04% Sc)

A large part of the argument for CLQ rests on Scandium credits. At their planned annual processing throughput of 2.5mtpa, they will produce 18000 tpa in Ni, 15000 tpa in Co and 4000tpa of Scandium. Here's the issue, the global market for scandium is 10-15 tpa. It is a stretch to think they would be able to grab more than 10% of the market without negatively affecting the Scandium price (i.e. for Scandium global demand is the bottleneck...supply is irrelevant). So only 1 in 40 scandium credits are practically usable for every ton of ore processed, making Scandium irrelevant for calculations. Given this, every ton of ore contains $80 worth of Ni + $70 worth of Co + $10 worth of Sc.

So we have US$160 worth of material per ton of ore processed. The total Co eq for CLQ is about ~200,000 tons.

NZC:
2.7% Cu and 0.27% Co

That's $160 worth of Cu + $135 worth of Co...or US$300 worth of material per ton of ore.

NZC has 66,000 tons of Co eq, or 1/3rd of CLQ....But NZC should have ATLEAST twice the profitability per ton of ore processed compared to CLQ given we just have much higher $ content per ton of ore...with all else being comparable or better.

So CLQ is 3x larger in volume, but 1/2x as profitable....or 1.5x superior in terms of cash flows.

CLQ trades at ~A$600m market cap after recent dilution, NZC trades at A$64m....

Either we should approach their valuation or they should approach ours.....!!