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70.0¢ mallee resources limited

Nickel today is US$22,500. Costs are likely going to average...

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Kalenn

10,591 Posts.

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11/08/22

06:15

Post #: 63044745
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Originally posted by WesMantooth: ↑

John said they would aim for the most economical output of 1.2mil tonnes though the mill every year. It’s fed in at 1% nickel and recovers close to 80% at the other end into the concentrate. That’s 9600t of nickel in the concentrate that would sell at around $850 per tonne (of the nickel not the concentrate). So $8 million a year cash to pay for the mine and expenses?

what am I miss calculating here?

(Please excuse my ignorance, my brother just got a job with the company and is wondering if he should put $2000 into the CR so I’m trying to work out a rough estimate of per share dividend in a few years)

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Nickel today is US$22,500. Costs are likely going to average US$10-12,000.
Based on your assumptions of 9600t of nickel in concentrate that would be somewhere in the order of US$96,000,000 = A$137M.
My numbers looking at a few different possible Nickel price and production scenarios

MYL Price at posting: 70.0¢ Sentiment: Buy Disclosure: Held
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