I scratch my head every time I watch the 121 presentation as to how we are still so cheap.
ARL just released there Pre-FS and these are some numbers that came from it.
Earnings are based on an average price of US$8.84/lb nickel sulphate and $41.63/lb of cobalt sulphate, as well as an exchange rate of 0.788. Those sulphate prices represent average spot pricing levels in February. Im fairly sure they are using these prices over the 25 year LOM. In comparison NZC are using $18/Ib for cobalt.
"Goongarrie project near Kalgoorlie could cost about A$600 million to build and be able to generate top line annual earnings of $210 million. The 1 million tonne per annum Goongarrie development would produce 1180 tonnes of contained cobalt and 9300t of contained nickel per annum within separate sulphate products.
Cash costs are put at 42c per pound of nickel metal after cobalt credits.
An internal rate of return of 25% and net present value of A$1.04 billion were calculated, with payback put at 5.3 years. The project is said to be readily expandable and have “significant expansion potential”. Ardea is aiming to bring the project into production in 2022."
Now if you compare NZC stage 2 SX-EW capex is approx $200M USD (from memory) and compare what NZC will make using the pricing for copper/cobalt from Feb I think it would show how ridiculously undervalued NZC is compared to ARL considering the potential exploration upside to extend LOM. Maybe @mineralised has the number crunched on the potential.
