Sir Litigant,Please don’t be fooled by the positive cashflow of...

Sir Litigant,

Please don’t be fooled by the positive cashflow of about $5m reported in the March quarter - Smart money can see through this result hence why the share price is trading at about $0.11 at the moment.

As I understand, nickel averaged $26-27k(USD) for the March quarter and the by-credits were also higher during the said period.

The March quarter noted that C1 costs had increased from $11.81(AUD) in the December quarter to $12.78(AUD) in the March quarter (notwithstanding the higher said prices in March quarter) it would appear that the company had to also strategically cutback on AISC/AIC costs to squeeze through this $5m.

Fast forward today and all three commodity metrics are significantly lower than pricing in the March quarter. Furthermore, how long can you get away with cutting on mine development and capital expenditure (AISC/AIC) before it starts to impact the operation? And then shouldn’t playing catch-up on mine development and capital expenditure hit costs harder in the reporting period? So moving from positive cashflow to a loss to balance out the financials in the end?

So with current pricing and factoring the said circumstances, please explain to me how this company can continue to be positive cash flow in the June quarter or immediate future.

Ultimately, nickel, copper and cobalt all need to significantly move higher but I feel Victor may no longer have this luxury and reality is going to bite.

Even the numbers beyond FY25 are not that attractive in my opinion.

I have finally come to accept this reality.