avq, page-158

You didn't buy due to the promotion that occurred last week?

Their financials indicated a pending CR end of this month, most of us are certain of it. You need to also look at the cash flow of the company, from memory it was around $3M in administration expense, and another $3M in salary and wages last financial year so they need to raise at least $6M to just cover BAU operation costs for this year and they still need to incur the $20M USD capital to go into production.

Also there is a different in DSO price for laterite nickel ore, note, they don't produce nickel/refine nickel concentrate as they don't have the capital to build $500M USD to $1B USD infrastructure to process and refine the nickel. I had to gather some DD on this so it's worthwhile learning about the difference.

They have JORC 20Mt of laterite nickel ore at Isabel and half of them are the mid grade saprolite which are deem feasible to mine, but the other half are low grade limonite which currently sells for around $10US/WMT, less than their $11.5US/WMT FOB production cost and as it doesn't include the shipping cost as it's incurred by the buyer, they will need to sell it for even less than the $10US/WMT, the shipping cost is around $4-6US/WMT from the Philippines to China so from Indonesia to China it will likely be around $8US/WMT so it will be selling for $2US/WMT (which clearly is not feasible at all).

Important DD is that their JORC resource is actually half of the total 20Mt (note, they spent $9-11M in exploration cost to JORC this 20Mt resource).

Hope this helps.