The ASO quote below was just in SHead.
I have already posted metrics about Crawford which is lower grade and much lower recoveries of only 37%. ASO will be much more profitable than Crawford based on its current metrics. A PFS on the Crawford project is expected this half year - will be one to watch to understand more about ASO’s project.
I was taken aback about the Turnagain project having Mitsubishi buying in - it has a grade of 0.21% and recoveries of 58%. This project has had various owners over many years trying to get it to a mining stage and about 4 scoping studies with the latest in 2019 having a negative NPV at at a Ni price of $US7.50 much lower than the $US11 to $US12 per Lb currently. It is going to a PFS. (I have not researched this project as much as Crawford).
Mitsubishi demonstrates how desperate companies are getting to source Ni.
On current metrics ASO will achieve 2.12 to 2.43 more Ni metal extracted from a ton of ore at 70% or 80% of recoveries for ASO than the Crawford project and 1.55 to 1.77 times more Ni extracted than the Tirnagain project.
One should note that despite having poorer metrics Crawford appears to have better financial outcomes than the Turnagain project - not sure why but Ni price and I assume location are 3 reasons - there may be other reasons.
Based on current ASO metrics my conclusion is that almost no one gets what a gem ASO may be sitting on - BUT it’s very early in the ASO journey and anything can happen as there are no guarantees in life - ie investing in ASO is very high risk but a potential big payoff.
If I am wrong what am I missing? I don’t mind being wrong (as I don’t line losing money).
“Anglo American recently took up a 10% stake in the Toronto-listed Canada Nickel which owns the Crawford project (3.48Mt grading 0.24% nickel), and Japan’s Mitsubishi took a 15% interest in the Turnagain project (4.8diMt grading 0.21% nickel).
“Apart from multi-decades of mine life, their scale of operation means they could potentially produce in the bottom half of the nickel industry cost curve (Turnagain has reported a $US2.81/lb cash cost potential).
“Boomerang is in the same league, with a higher grade too.
“So don’t think ‘low’ grade means low profits. These things can throw off huge amounts of cash when mining and processing treatment rates get up to 40mtpa-plus.”
