The copper & cobalt are used as credits and ultimately go towards offsetting our cost base. i.e AISC.
So example if we achieve nameplate (9,000t) using today’s spot nickel (currency covered):-
AISC (FY24) - $6.37(aud) per pound. Corporate costs - $1.00(aud) per pound. Drilling + Interest (about $6m per FY) - $0.30(aud) per pound Total - $7.67(aud) per pound.
Todays nickel spot - $14.58(aud)
$14.58 - $7.67 = $6.91(aud) per pound (gross profit).
$6.91 per pound x 2206 = $15,243.46 per tonne x 9,000t = $137,191.14m (gross profit).
Now if you believe in the role nickel will play to drive the green energy revolution and see nickel pricing higher than todays spot. I would then propose you substantially raise the gross profit to the upside. (This does not include cost synergies in reducing costs over time or increasing production beyond nameplate).
And yet our market cap is a measly $370m. (Figure that..)