Anyone out there have a view on whether S32 is interested in buying AAL's for-sale Brazilian Nickel mines?
Barro Alto produces ~30,000t Ni pa and Codemin ~9,000t for domestic Brazilian production.
AAL says the Barro Alto processing plant was built at a capital cost of $US1.9 billion and commissioned in 2011. The mines are characterised as 'marginal', with 2023 EBITDA of $US135m. The Barro Alto mine and plant were written down by $US779m in 2023. Ouch!
GK & team would have strong opinions on the value of these properties - likely very low due to major fresh Ni supply coming from Indonesia and battery manufacturing turning away from Ni.
Still, they will have considered the option. Is this a 'straw hats in winter' moment?
Ash
S32 Price at posting:
$3.82 Sentiment: Buy Disclosure: Held
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