Nickel Boner Update, page-3949

The results from GS necessitated a shift in strategy. We shifted from a relatively simple strategy of mining high grade GS and SS ore and initially just selling it DSO before refurbishing/starting up the tiny 150ktpa concentrator - that was the 'high grade, high margin' plan. The 'fill the mill' plan was the replacement - it's a more complex project in nature (there are risk and capital considerations that flow from that) and there is a lot more work involved in bringing it to life. That is why the FID was pushed out by 7 months from Dec21 to Jul22.

The good news is that we're looking to bring our massive BS concentrator back life at a perfect time. Even at 1.1mtpa (50%) it's a huge milling capacity. For comparison, think about BHP's Kambalda Concentrator (where Mincor is contracted to DSO it's ore until Dec 2025) - it has a maximum 600ktpa capacity.

Granted, with the ore we are currently planning to feed in (ie mainly BS open pit), we need to mill big volume to pump out the the required amount of concentrate. However, if PH pulls this off and gets the big dog up and running, it means any upgrades in the feedstock (think more high grade discoveries, improvement in BS grades, Windarra) will result in significant uplift of Ni (as concentrate) coming out the other end.

What I'm trying to say is that there is massive upside potential to the 'fill the mill' strategy if it's executed and the Nckel price stays healthy for long enough. As frustrating as some of the events of the last 12 months have been, I am willing to wait around a see if PH can pull it off.