I think markets are getting spooked by any rise in costs by the...

I think markets are getting spooked by any rise in costs by the miners at the mo with commod prices so low and margins already slim
- certainly not a blowout though with cash costs under $3/lb and forecast for life of mine to stay that way. Wouldn't have though unexpected either with moving to underground at SQ (the whole increase was in the mining cost, other costs staying the same), although management was unable to give us exact forecasts previously, what figures they did spruik were slightly below

90% of Ni miners would kill for <$3/lb and that's why we're in WSA, they're still making money while others are just holding on or going broke. The pig iron and laterite guys would all be holding discussions whether to shut down and I guarantee that the current $7/lb will not be your long term price (futures agree)

Explo encouraging without the outright excitement of SQ's first hits a few yrs back - below the granite seems to be the jackpot zone around Forrestania so fingers crossed there at Sunrise

Agree with EL, earnings will be lean (but still earnings !)
- annoying we can never get told the payable terms on their sales contracts but thinking a couple of dollars/lb margin after ITDA and maybe NPAT of $50mil as a rough guess

With plenty of resources and reserves now and therefore long life (10yrs +), a reasonable PE could be applied at what is the bottom of cycle Ni prices currently
Don't know whether to praise excellent management or just the fantastic real estate we have (maybe both), but WSA has always over-delivered - we are hostage to macro problems ATM and my fogged up crystal ball has no idea on that one