On Monday SB wrote: Mt Thirsty is high grade, AND has larger %...

On Monday SB wrote:
Mt Thirsty is high grade, AND has larger % of its value in a secondary product - nickel (than CLQ an COB). So on a value basis Mt Thirsty is less pure play,
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Normally we focus on the Co price. Why not?

I've taken a look at a Ni price projection and the outlook is good.

The Harry Andrews pitchfork charting tool is good for looking ahead.It certainly worked well last August when a Co price of USD36/lb by end of 2017 was forecast based on an upper fork target and it got there. Next target is the 2008 high at 52-ish and current zeal suggests it might get done this year using another fork.

I checked the scoping study again and it uses a life-of-mine average Co price of USD72,200/tonne = USD32.75/pound.

This week the Co price is around USD89,500 = USD44.65/lb. Thats 36% above the assumed Scoping Study Co price. What does that do to the Study's NPV?

NB: Co chart below is 7 weeks old.


Nickel!

The Scoping Study uses a Ni price of AUD20,945/tonne = USD15,500 at an exchange rate of 74. That computes to USD7.03/pound. The Andrews fork suggests it's not far away.

Obviously the forex rate at 74 is the rogue elephant but Figure 14 of the Scoping Study shows good decision-making.

Right now the Aussie is worming along around 76.