OZL today approved a $1.7B Ni mine at West Musgrace
Its only 35ktpa low grade Ni with aud$417Mpa revenue with a 2MTpa mill in the stranded nullabor 1300km from Perth & rebuffed BHPs takeover bid also with a ludicrous timeline of 3 years considering the size and stranded area
(Nova took 4 years at 5 times closer to Perth at a cost of $800M)
"Sept 23 (R e u t e r s ) - Australian miner OZ Minerals Ltd (
OZL) said on Friday it would invest about A$1.7 billion ($1.13 billion) to develop the West Musgrave copper-nickel project in Western Australia, as it looks to cash in on increasing demand for battery metals. The project is expected to produce on average about 35,000 tonnes of nickel and about 41,000 tonnes of copper every year for the first five years, the final feasibility study showed. The miner, which is targeting first production from there in the second half of 2025, said the project will be capable of processing 13.5 million tonnes per year.
"Investment approval for West Musgrave unlocks one of the largest undeveloped nickel projects in the world and, with expected lowest quartile costs, it is set to generate about A$9.8 billion undiscounted cashflow over its 24-year operating life," OZ Chief Executive Officer Andrew Cole said in a statement.
The final investment decision for the project comes nearly a month after the miner said it was planning to more than double its copper output to support green energy, and that it had a "lot more value to create" than accepting a $5.8 billion takeover offer by BHP Group (
BHP) . OZ in early August rebuffed the offer, saying it was undervaluing the company and was opportunistic"
BHP will be peeved at this no doubt and its Ni ore options are diminishing fast.
BHPs bid for OZL is smashed & now even more so.
BHPs bid for Noront failed also due to AFAF.
IGOs bids for WSA & PAN have blown away BHPs controls over them also.
Soon IGO will move to remove BHP as offtaker totally from Nova & Flying Fox thereby slashing BHPs Ni ore supply and cementing its incapacity to supply Tesla Ford GM and even existing supply contracts.
BHPs cheapskate acquisition attempts have been rejected as its attempts to retain its monopoly thwarted & blocked, soon its time to pay the piper.
So whats POS worth then
if West Musgrave is worth $1.7B when POS has double the milling capacity & double this production capacity and higher grade mines at SS GS EA AR with way lower costs due to way lower transport costs as way closer to Kalgoorlie & Perth than them?
$3.4B or 111c ps ?!
LOL.
Only 1 Ni miner left dirt cheap without a 21% holder like IGO sub $1B to bid for looks like.
POS.
(20min delay)