50% of the tonnage JORC at Isabel isn't viable, that all you need to know, isn't it?
AVQ even stated this in their PFS report.....so no mining experience required.
What is the current price for mid grade 1.5% laterite (saproite) nickel ore?
Nickel Asia sells them on average $37US/WMT to Japan but it's reported that they also sell it for $22US/WMT to China and Australia, but that was when PoN averaged $5.35US/lb!!!!
FOB production cost of $11.49US/WMT, buyers will incur shipping cost so that is another $4US/WMT that they don't pay for the ore so lets say $18US/WMT and +6.5US/WMT for DSO of 2Mt per year, $13M USD net profit per year, $39M USD in 3 years, $12M USD goes to the JV and AVQ only gets $27M USD and they need to pay back the $20M USD used for their startup capital in around <3 years as they projected.
That leaves a total of $7M USD for BAU operating cost for 3 years and to JORC the other remaining areas and administration and salary costs.......I think AVQ is just a low DSO operation and aren't going to be as big as some rampers think?
avq, page-201
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