AVQ 0.00% 2.5¢ axiom mining limited

Perhaps a few facts might have you all look at this in some...

  1. 12 Posts.
    Perhaps a few facts might have you all look at this in some perspective. If the company wants to build an HPAL plant it would cost cica $4 billion for a 50,000 tonnes per annum plant. As we have all seen, they tend not to work well and have very long paybacks.
    So what are the alternatives? How about direct exporting of ore? Capex is low for this type of operation, so they could probably build a 100ktpm operation for around $20M. Operating costs, subject to haul distances could be around $20/t on a ship. So what is the current market for 1% Ni lateritic ore? $17-18!
    Therefore to get any sort of return, they would have to get the grade up to at least 1.4% Ni, for which the current Chinese price is $26-28/t. The resource size would of course fall significantly using the required higher cut off grade.
    I am not trying to rain on the company's parade- getting a deal done in the Sols is a result worthy of praise. But there has been a lot of first rate BS written here on this subject.
 
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