The REAL only devalue by 25% this year and their COP including royalty has dropped from 5.23 in Q1 (using a REAL of 2.88 so increase of 8% for the year) to 4.72 in Q2 (using a REAL of 3.07 so increase of 15% for the year) , if it was 60% for the year, their COP will be in the low to mid 2US/lb.......so they will be making a huge net cash profit of 22M per quarter.
By my calculation, if MBN used the current REAL of 3.5, the COP including royalty should be around 3.5-3.7US/lb so they should be making a profit so it definitely was a very strange voluntary suspension to me........and 4 weeks seems like major negotiation with 3rd party financers instead of just trying to raise 10-20M for this huge nickel price downturn given they still had 19M in cash in hand and deposit.
MBN Price at posting:
8.3¢ Sentiment: Hold Disclosure: Held
