CTM will become a monster of a cash cow. The ESG class 1 premium...

CTM will become a monster of a cash cow. The ESG class 1 premium will be the extra cream off the top. Check out the premium Nornickel commands with its ESG class 1 product:

"Nornickel's premium was quoted end-November at $793/mt, on a London Metal Exchange cash nickel price averaging $19,957/mt for the month. Nornickel's "green" Class 1 nickel currently has a carbon footprint averaging 8 mt of CO2 per metric ton of metal produced, compared to an industry average of 13 mt/CO2 per mt of metal, while some producers' works emit as much as 160 mt/CO2 per mt of metal...".

For comparison, CTM are already approximated at a class-leading 4.69 tonnes of CO2/tonne of nickel equivalent (and said to improve substantially on that - see CTM announcement 8 Dec). If CTM can get to net-zero or even into credit, then that would be the ultimate wet dream for the premium that Jag nickel could command. Memo to flash and the dodger - get us to net zero or better still with credits!!! And market it as so (although it looks like Vale is already onto this!).

All in all, CTM's valuation should factor in the premium that could be commanded for ESG class 1 nickel. And that premium looks like it could be in the vicinity of around 5% over the LME price!