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.
NIC Price at posting:
87.0¢ Sentiment: Sell Disclosure: Held
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