Nickel Price aud$33,000 pT, page-25

You do not mine a resource

you Mine and process a reserve

the reserve is turned into money

pos has only 28300 tons of probable nickel in its ore reserve category between silver and black swan - open pot and underground

It is working on changing that

it needs a lot more -to get a return on the forecasted capital it needs to restart imo

28300 tons of only probable nickel isn’t going to justify a restart imo

this is why they continue to spend money drilling to build and to better define what they have

probable is maybe just greater than 50 percent -


maybe some restart based on only having 28300 tons of probable only ore reserved which requires 10s millions of capital to restart in the past up in cloncurry but can’t see that happening here

It already has a market cap of 303 m - it’s plant is there needing refurbish

- it’s reserve has not got anything in proven catagory as of yet - not one ton— hence all the continued drilling assaying and studies of certain aspect of future production

hence it continues to drill until It can get a enough ore in its reserve to justify a refurb and restart -

without the jorc reserve building it can’t currently prove its economics -

there is no delay - they are and have attempted to build the reserve but haven’t cracked it yet - it’s that simple imo

once that ore statement starts to firm up then they will if it’s enough look at a full dfs right - sure they know the costs of refurb but they need ore reserves to mine - they are clearly working to achieve that - time will tell if they are successful - unfortunately the last major drilling campaign found lots of stuff but the reserve delivered is only 28300 t “probable “ nickel - hence lots more work to find more and to better define the reserve


Until then That’s the risk you take

It has competitive advantage with plants sitting there - it has semi current refurb costs - it just needs to have a bigger nickel reserve and until it does imo there won’t be a rush to cap raise and restart

good luck —