I wont be going to Perth on this occasion. Votes for all three holdings are lodged with Chair as proxy though. I will be going to Avebury instead in the second week of July, tickets are booked.
I already have good research on most of the issues that are being raised but there is nothing like getting it from multiple angles in person and taking in all the unconscious cues we all put out. Many of the answers are actually in the most recent company presentation
https://malleeresources.com.au/static/f042b4faa5267e14f4f7c3fa86429528/220614-investor-presentation.pdf .
The arsenic issue for example is well explained as long as you take the history of offtake at Avebury into account. The original offtake signed to by Allegiance back when the mine started with Jinchuan Group (
disallowed/business/allegiance-starts-mining-at-avebury-20070124-gdpb4o.html) had terms that required approximately 20% Ni in the concentrate and 100% of concentrate delivered to China. Then China limited arsenic levels in concentrate. This meant that Allegiance couldn't get down below the 0.5% Arsenic levels required to ship an acceptable payload. If you look at page 12 of MYL's recent presentation you will see that where the decline hits the orebody there is both higher Ni grades (Allegiance would have sought that for start up) but also higher As grades. By the time that ore is concentrated up to a 20% concentrate the As grade would have been beyond Chinas limit.
The solution? Vary where you are mining to create a lower As percentage in the feed stock, vary the concentrate Ni grade, maybe increasing recoveries in the process, vary the destination of some of the concentrate to somewhere that can deal with higher Arsenic loads. These are all solutions MYL can pursue especially with the assistance of their shareholder Hartree who own the offtake deal and trade worldwide, a market which Allegiance had no access to. Then for Allegiance, add a GFC and historically low Nickel prices.
PS I will be taking up more in the cap raising and I suspect holders will get to the top of the queue.
