News/Research articles, page-352

Hi shogunr,
CLQ used US$7.50/lb for Ni and $12/lb for Co. in their PFS (late 2016).
Price of Ni was around it’s cyclical bottom back then under $4.

$7.50 was chosen as a long run average price based on banker/broker consensus, and high grade battery Ni would be at a premium to this.

I can’t see any reason why ARL would choose a Ni price below this in their PFS.

I’m no expert, all I can go on is from what I read and the obvious trend in the price of Ni.

You have:
Population growth;
The industrialisation of third world economies;
Massive infrastructure spend around the world (Trump, One Belt-one road, even Sydney);
New deposits of Ni are becoming harder to find;
EV and storage taking off; and,
A good portion of Ni production coming out of semi-stable mining districts in the Philippines and Indonesia. Much of this production is low grade and not suitable for modern batteries.

You also have the USDollar under some pressure with inflation creeping up.

Balanced against this, I believe some of the majors will bring previously mothballed Ni assets back on line.

My view is that Ni is heading to US$10/lb+++. It is a clear standout performer in base metals at this moment and these price moves tend to get exaggerated far beyond what most would consider rational.

These are just my opinions but I can’t see how ARL would use a Ni price any lower than $7.50/lb.