Sleeping Beauty ASX BSX, page-213

Because they probably wouldn't make money right now. The DSS feed grade is lower than the MSV. Might get around B/E at current prices so would be wasting resources and incurring execution risk.

There is 2 avenues to make money and I suspect we use both given time. Drill this out to 50Mt+ and double or triple the size of the plant. Drives down fixed costs and makes the DSS much more economical. Then utilise downstream to get rid of the tarrif.

You expand this to say 1.50Mtpa at 0.8% Nickel and 85% recoveries you are producing 10,200t of contained Nickel (Scott has already hinted at this)

If we are producing Sulphate we should be getting 100% payability on contained metal or thereabouts. So Rev of US$144m p.a at current prices. Then it just becomes about what our costs are.

2 stages of capex probably cost $100-150m. Opex should be workable

For a reference point CZI reckon they can deliver Nickel C1 costs of $2.30/lb at the upper end on a deposit that averages about 0.51% NiEq at current prices + 0.25g/t PGE's

We should be 0.8% Ni + 0.4-0.5g/t PGE's

I would say AISC to Ni Sulphate should be doable at $3.50-4/lb at a rough guess with current prices at $6.60/lb

So based on that I am estimating 10,200 * 2,200 (pounds) * 95% (recoveries to sulphate) * $2.60/lb = EBITDA of US$55m p.a

LOM should be 20 years plus on a 1.5Mtpa plant.

Obviously I am just spitballing here and could be way off but it's a starting point for people to discuss

Disc: I bought more today, I get more bullish the deeper I think on this