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12:48
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Originally posted by Habaner0:
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I would recommend checking out prior presentations, they source unloved ore feed from existing New Caledonian mines. With the nature of the DNi QPM can happily process the entire nickel profile, and considering limonite is largely available and not of interest to others who for the majority favour saprolite. This means QPM will have a comfortable supply of uncontested ore, as I believe the large part of this limonite is almost treated as waste by the NC mines (check yourself for specifics to confirm, haven't read up in a while but that's how I view it). Are they affected by pricing? yes, but to a much lesser degree given the ore they are taking.
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Just want to add: The relatively low sensitivity of project cash flows and returns to the nickel price is due to the fact that pricing under the ore supply agreements and offtake agreements is linked to the same benchmarks (one for nickel and one for cobalt). The TECH Project does realise higher returns when prices are higher (and conversely, lower returns when prices are lower) but it is by no means a 1:1 relationship.
