Once the markets finished have a tantrum on this, it might figure out that WSA should actually make MORE money from this, over its mine life. Nickel prices are forecast to go up, not down, so it should be producing more nickel, at higher prices due to this, if production which was scheduled for 21, has moved to 22. They're showing a bit over a 7% increase in prices for next year. If that trend continues, as its scheduled to, they'll make at least 7% more on the product - and more like 10%+ if some of the forecasts are correct.
So for investors (not traders) this is a positive re the overall value which should be achieved over the remaining mine life, IMNHO.
Any dissenting opinions welcomed, always good to see what the flip side to a train of thought is! But for me, this is a buying opportunity.
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https://publications.industry.gov.au/publications/resourcesandenergyquarterlyjune2020/documents/Resources-and-Energy-Quarterly-June-2020-Nickel.pdfThenickel priceis expected to decline to average US$12,600 a tonne in 2020, as a result of weaker consumption. Subsequently, themarketisforecastto tighten, pushing thepriceup to aforecastUS$15,100 a tonne in2022.
