ARL is 'unloved' due to old studies which showed high cash cost....

ARL is 'unloved' due to old studies which showed high cash cost.

The following chart sourced from Brook Hunt, showed there were about US$1.2/lb difference between CLQ's Syerston and ARL's KNP.

CLQ's Syerston, C1 nickel cost was about US$6.3/lb on the following chart,
But their current PFS shows their C1 cost dramatically reduces to US$2.96/lb or US$0.89/lb after co credit.

ARL's KNP C1 nickel cost was US$7.5/lb on the following chart, US$4.27/lb in 2014's study.

ARL is currently focusing on cobalt high grade zone, should reduce cash cost and potentially capex.
ARL 2014 PFS' capex is A$660m where CLQ's current PFS' capex is A$906m.

My exercise on NPV for ARL's KNP, using same price assumptions of CLQ's current PFS, ARL's NPV would be around $1.2b or ~30% IRR.

Our current cobalt resource mainly is based on previous nickel cutoff, new cobalt resource will be announced in July 2017; new revised PFS is scheduled to be completed in nine months.

The revised PFS results should give a clearer picture of ARL.

DYOR.