The way I have approached the announced capex spend is using Ramu (85% owned by MCC) as a yardstick, total capex US$2.1b for a 33.1ktpa Ni operation (3 autoclaves). Sunrise proposition of $US1.49b for a 19ktpa Ni operation (2 autoclaves) appears feasible. Though a lengthy ramp up at Ramu it has proven a successful operation which in 2018 operated at 106% nameplate, they are currently in negotiations with the PNG Govt to increase the capacity.
One of the more recent HPAL Nickel Laterite operations was Taganito in the Philippines which was commissioned in 2013 for a capex spend of US$1.7B for a 30ktpa operation. As one of the more successful HPAL operations they expanded the operation to 36ktpa in 2017.
The depreciating $AUD also in favour to control construction costs plus I wouldn't understate the advantage of the location and existing infrastructure of this location. Lets just wait and see what assistance the local, state and Federal govts provide to get this operation over the line.
CLQ Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
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