Phew what a day!Kudos to the shorters for making a killing...

Phew what a day!
Kudos to the shorters for making a killing yesterday and today and seeing the chink in the armour but stay humble please, markets giveth but they taketh too.
After hearing Alex explain the SS in the webinar yesterday and follow up questions by UBS , JP Morgan and others I saw 3 areas of concern that the market used to punish CHN.
1. A 7 year wait for the mine.2. Assumptions for metal prices seemed too high to many observers.
3. The discount rate of 6.5% to determine NPV was questioned as being too low compared to an industry standard 8.5 to 9%.
As it's their first stab at laying the groundwork for the future I think they were going to get hammered no matter what they released.
I'm not concerned about the mine taking 7 years as they need to get it right as its a unique resource of unprecedented scale and importance to the world and there will be plenty of adjustments made to the upside till then as they figure more things out.Metal prices are hovering at cyclic lows and the key Pdn is at a silly 1200usd/Oz squashed by massive shorts and where the South African mines are currently producing at 1300Usd , as Alex said will go bust if such prices continue. The shorters if asked Pdn for delivery will be toast.
He also mentions his potential off take partners don't trust the LME or Shanghai exchange for realistic metals pricing.
So looking out 7 years later to mine and for 18 - 19 year life of mine they made higher price assumptions.
Alex when questioned on the discount rate to decide NPV by JP Morgan did his best to try and present his reasoning saying there was a precedent in Australia and agreed the numbers would change to the lower end if a higher rate was used.
Overall the brokers were not giving Alex a hard time.Though there were probably sending messages to the broking floor to go short looking at the timelines.
What next?Price will do what it does till they announce partners fairly soon which according to Alex there is no shortage of and why T Goyder said he expects price will recover in 6 months.
They'll move towards PFS in 2025, keep drilling and expanding resource, could find another biggy.
Have enough funds for 18 mths at a 5 mill/ month cash burn.
They still have work to do on the nickel side but that will add value when they figure it out.
As T Goyder said yesterday to long term holders this will just be a bump in the road for this critical minerals jackpot and the 2 billion to mine will be funded with a 2 year payback and a possible 30mt per annum production in just the starter mine.
WA government wants this and what it gives the state in revenues.
Partners need the critical minerals in a place of low sovereign risk.