Comparisons with other HPA and NiSO4, CoSO4 companies.

With the new combined feasibility study out its possible to do a comparison with others seeking to make the same products. I think the reason for the increase in price and volume since the release of the feasibility study is likely due to favourable comparisons. I've converted everything to USD to allow for easier and more accurate comparisons. (You'll have to scroll across to see the whole table)

	4N HPA Producers				Nickel and Cobalt Sulphate Producers
	Altech Chemicals (ATC)	Alpha HPA Ltd (A4N)	FYI Resources (FYI)	Pure Minerals (PM1)	Australian Mines Ltd (AUZ)	Clean TeQ Holdings Ltd (CLQ)
Market Capitilization	40m	98m	11.5m	9m	33m	150m	Market Capitalization
Post-tax NPV (USD)	505m (7.5%)	N/A	543m (10%)	1000m (8%)	575m (8%)	1392m (8%)	Post-Tax NPV (USD)
CAPEX (USD)	298m	209m	189m	442m	974m	1495m	CAPEX (USD)
IRR (post tax)	22%	N/A	46%	31%	15%	19.10%	IRR (post tax)
EBITDA (USD)	76m	-	133m	177m	231m	344m	EBITDA (USD)
HPA Operating Cost (USD/t)	8550	5940 (after by products)	6217	3074 (without by products)
HPA Pricing Assumption (USD/t)	26900	25000	24000	25000	-	-	-
HPA Production	4500tpa	10000tpa	8000tpa	4000tpa		-	-
Other Products	none	2 Fertilizer Products	none	Haematite, Magnesia	Scandium	Scandium, Ammonia Sulphate	Other Products
				0.565mtpa	2mtpa	2.5mtpa	Throughput
				1.60%	0.58%	0.75%	Ni Grade
				0.18%	0.08%	0.15%	Co Grade
				7 (2)	7 (2)	7 (1)	Ni Price Used (USD/lb)
				25 (0)	30 (0)	30 (0)	Co Price Used (USD/lb)
Payback Period	3.9 years	2 years	3.6 years	3.5 years	5.8 years	4.3 years	Payback Period

Revenue Diversification


Commodity price cycles can be make or break for producers, I think the diversification of revenue is very appealing. Personally I think pure HPA producers underwrite a decent amount of commodity price risk. Cobalt as we all know is significantly less than $30/lb. I note the spot case financial analysis in the PFS which used a $5.70 nickel price, $14.15 cobalt price, $20 000 HPA price still had an AUD NPV > $1bn post-tax.