Ann: Quarterly Cash Flow Report - September 2023, page-7

Good luck Tendies4me,

I'm not sure how you calculate how they are not profitable. Using the info you mentioned in your earlier thread form the PFS, being a drop of -/+10% equates to a decrease/increase of $35 million to pre-tax NPV. The Company used a nickel price of A$35,294/t and had a pre-tax NPV (8%) of $164 million in the Baker PFS.

Nickel is today roughly A$24,000/t. That is a drop of 32% in the nickel price. That equates to a drop of $112M pre-tax NPV (3.2 x $35 million), meaning pre-tax NPV is $52 million today.

Still profitable but nowhere near as good as it was. However, market capitalisaiton is now $85 million at $0.39c. Enterprise value (assuming ~$30M cash) is $55 million. So pretty much, all your paying for is Baker Ore Reserve if you buy today. Free option on others (in particular Foster which has 39kt in indicated @ 3.2% Ni, some of that will convert to Ore Reserve). Not to mention upside below Baker.

As others get fearful with negative nickel sentiment, I get greedy.

P.S.

Another way to calculate value of Baker is as follows:

A$ Nickel Price per tonne x Grade x Recovery x Payability less AISC per tonne less Pre-production per tonne is the margin per ore tonne, multiplied by number of Ore tonnes.

Using numbers from PFS, except Nickel Price (A$24,000/t) and Payability of 72.5% (payability not quoted but I've tried to back calculate)

A$24,000/t x 2.86% x 91.2% x 72.5% less A$340/t less A$30/t = A$83.80/t margin per ore tonne.

612,000 tonnes of ore in Ore Reserve = $51.2M.