Much love to money of mine, but we're not interested in this based on today's nickel price, we see this as a play for the next 40 years. As we all know, nickel is extremely volatile.
They did then highlight with the question "why are the consortium then tipping in the money" and the answer would be they are seeing it the same way we are, albeit from a purchaser perspective. Over a long enough time period nickel can be above or below the price forecasts and they don't want to have unreliable supply chains. Let alone ESG unfriendly ones with how disgusting indonesian nickel is.
So with such a long life project like this and us not even selling any product until 2028, I would not be concerned with where the nickel price is today at all. The Japanese don't seem concerned either.
Very much a contrarian play though, as one of the comments noted. If you're in on this, you are a contrarian and don't believe indonesian nickel is going to continue to dominate for the next 44 years.
Ann: ARL SMM and MC to form a JV to develop KNP Goongarrie Hub, page-108
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