company & operational update out, page-23

I'd say the stock value is closer to $20M USD....

You would need to apply a discount for concentrate terms of sale (ie. nickel metal generally sells for 100% of LME, concentrate will be closer to 68 - 75% depending on grade).

Also, you have to apply freight costs - generally the payable percentage is calculated once the product reaches the buyer's doorstep.

Finally, the 12,500 DMT of stock seems to relate to concentrate tonnes, not contained nickel in concentrate.

Concentrate is generally between 12% - 17% contained nickel, so if the 12.5kt is concentrate, the contained nickel will be ~ 1.9Kt, sold at terms of ~ 75% LME ($6.58 USD / lb), so worth approximately $20.1M pre-freight costs.

Given their quarterly production is around 4KT contained nickel in concentrate, I would guess the 12.5Kt is concentrate tonnes, not nickel tonnes (otherwise this suggests they have about 9 months of production sitting in inventory).


Cheers,
Stew