Hi TB
Bit more bacground for you check when WSA and IGO inked OT with BHP. I'll save you the research it was when MCR went into C&M.
Now check their anns from when they inked those OT's about the benefit they gained from not having to pay transportation of half of their production to Esperance then from there to Asia or Europe. Also check when OT from both ( now one company) are renegotiating those OT's. I'll save you time again it is when KNO starts processing MCR ore.
Now that makes negs a bit harder especially when LNO and MKO are now ramped back up and BHP has Honeymoon ,purchased from Norilsk, to bring in as feed at LNO.
Now who is in a hard place? Nova only a few years of supply left, WSA only a few years more then relying on Cosmos which while being a rich deposit only small.
Now BHP only having a concentrator needs guaranteed feed to fuel their green credential expansion plans ( Kal smelter having major rebuild in 2023, Kwinana Refinery preparing Stage 2 of Nickel Sulphate as a expansion of newly opened Stage 1, MKO having a 700M expansion).
You think BHP is going to let another company potentially disrupt these laid out long term plans? You don't think IGO want a poor negotiating hand?
Read all the news reports regarding Nickel consolidation, BHP lost out on Noront. You think they will let that happen again in there own backyard with their WA expansion plans firmly in place?
No one eyed here, just practical reasoning.
Nuts hey.
MCR Price at posting:
$1.48 Sentiment: Buy Disclosure: Held
