Great presentation from SW, i don't see how anyone can knock his efforts and honesty. The only issue with the presentation was the pre release of slides without his context. Although I'm happy they did, so i could top up today at 48c. This is a case where underlying stock value based on npv opportunity has really dislocated from market cap due to massive over reaction to a change in an arbitrary target timeline. Opportunity cost of on an extra 6 months for 10x potential is really negligible.
What I did not love hearing in the pres was the partners aren't happy with the delay. But I'm sure they will be happy after 20 years of NCM supply and quickly forget a 6 month delay for ~750,000 cars worth of nickel.
Clearly the scale of required nickel globally and current partnering built up relationships and 1.5yr payback on DBU means this project is easily funded. Will be interesting to see on commissioning if they can scale up or high grade for increases to the 40ktpa. it will also be interesting to see how the massive nickel supply gap is filled globally over this period. By commissioning, the nickel price could be multiples on Us$24,000t. NPV could look much higher at that point. A great position for NC1 to be in as laterite mines will need to be funded.
BSX Price at posting:
49.5¢ Sentiment: Buy Disclosure: Held
