100 day countdown (#4), page-15

First 15 Last

Share
Profile

Follow
Jul

363 Posts.

36

04/07/22

13:48

Post #: 62358185
Share

Originally posted by Jul: ↑

IMHO only:

The short term certainly has many challenges - commercial (who can do the job) and financial (who can source the finance).
The long term economics are fine (PBT and the upswing in Ni demand from EVs). Labour supply is a challenge to the commercial case.

The strategic case is well set out by the mineral assets and infrastructure and by Fed investment in the POS-PBT JV. There is no question that POS should be in this business in the long term.

The question is about who runs POS and who owns POS. This may need to be a big player who can manage commercial and financial risk.

If POS cannot deliver a FID by September, then we need to carefully ask why. We need to ask this now. Feds and PBT need to be vitally concerned that their investment is at risk.

If the potential delay is due to short term commercial and financial issues then a take over by someone who can manage them is a better option than paying a team to wait and hope and over promise - and perhaps never deliver.

Some examples of management of short term commercial and financial risk are:
1. Norilsk dumping the combined projects entirely - cut losses and exit.
2. BHP previously halting its Ni project after a $1b investment - cut losses and exit
3. BHP re-entering the Ni projects recently and partnering with Tesla - invest heavily and change business model

A BHP-POS-PBT tie up is looking sensible, if POS cannot do this work itself.
Just MHO. Do your own research.

Expand

This is a geo (note: Golders - the best) report - quite splendid and beautiful (esp for BSD) and well presented - well done PH. Typical Golders..

Now Need to know:
1. Windarra gold sale progress
2. offtake agreement (s) progress
3. finance agreement progress
4. PBT JV

Maybe too much to ask if POS cannot answer, and a bigger player can, then there maybe a takeover opportunity.
MST/Argo say upwards of 20c.. Maybe OK in a recessionary environment. No Cash. No Dash.
Just question why no news to shareholders for so long. Just question that for long time.

POS Price at posting: 5.1¢ Sentiment: Sell Disclosure: Held
10 Upvote

0 Great analysis

Reply

Top Stories

ASL

Andean discovers up to 4,649 AgEq through maiden drilling in Chile

AI stocks: What to expect in 2024-25

WGX

Australian foreign investment regulators greenlight Westgold's buyout of Karora

AUN

Aurumin reports high-grade iron ore rock chips at Central Sandstone, WA

M2R

Miramar sniffs 5.48% Cu, 54.4% Pb and 73.48g/t Ag at new WA prospect