JRV Nickel, page-37

Here is some info from the Nico-Young PEA published back in April 2019.

$1.112 billion needed for initial capex.

The SMP acquisition could reduce capex by 200m - as they would send a mixed hydroxide feed product to the SMP for processing rather than refine it in OZ. Still...

Looking at 900m for initial capex.

Laterites typically need 1 billion plus, unless you are SRL (formerly CLQ), who needed $2.37 billion for their NSW laterite project (the last time I checked).

My view on Nico-Young is that they will bring in a partner (either Japanese or Korean battery manufacturer, etc) to fund a BFS in exchange for partial off-take. Once the true numbers are known, I think they will sell an equity stake in NY to fund its development - while retaining a decent chunk of equity themselves.

Clearly, NY is an option on higher Ni prices. They need a Ni price of around US$8/lb to make it work (see PEA).

So, you are bang on that the current Ni price of US$8.81/lb makes NY profitable at today’s prices.

And agreed - the Ni price will continue to climb. Personally, I’d like to see US$10/lb to really make it work well.

The laterites will have their time in the sun.