Ann: Isabel Nickel Project - San Jorge drilling update, page-50

Apologies, those Nickel Asia numbers take into account Nickel Asia actually incurs the shipping cost (which is by far their largest cost for DSO) from Philippines to Japan, China or Australia, AVQ's PFS indicates FOB where the buyers incur the cost so they will pay less for the ore (likely around $6US/WMT less from shipment SI to China due to the distance and $4US/WMT less from SI to Australia).

Note, their PFS only indicates mid-grade 1.5% saprolite ore production of around 10WMT for 5 years at 2WMT per year so maybe +4US/WMT net profit so $8M USD (given if they are shipping to China, ore price of $16US/WMT and COP of $12US/WMT), hence they can pay back the $18M USD production capital expenditure debt in 2 years as indicated in their PFS.

It is a viable operation but revenue and net profit isn't that great, IMO. I don't think their low grade limonite is a viable operation at this price (i.e. it will be around $10US/WMT taking into account the buyer will incur the shipping cost).