Interesting to watch Palmer/Qld Ni news - I am a touch puzzled QNI is in
such dire straits. I mean their business is to buy Ni ore from NewCal,
Indo or Phillipines - then extract metals http://www.qni.com.au/about-qn/pages/operational-overview.aspx.html
So surely when Ni prices are low - they are paying a lower price for the
ore??
So all they have to do is maintain a safe margin over ore cost + freight +
extract costs + overheads - they know their costs pretty close having been
operational for decades. Do you see the point? It is not as though they are locked in to paying for ore at some fixed price from an uneconomic orebody.
Surely they would not be buying ore where they did not have contracts to sell Ni metal.
