ARL 5.00% 47.5¢ ardea resources limited

Nice to see nickel break through the $6/lb resistance.  Anybody...

  1. 331 Posts.
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    Nice to see nickel break through the $6/lb resistance.  Anybody know what nickel sulphate is going for these days?  The PFS assumption is close to $9/lb.  It costs well over $5 for Ardea to produce a pound of nickel, so $6 nickel price isn’t going to make this project viable unless you can achieve a robust cobalt credit.  It was the rise in cobalt that woke this project up.  The PFS assumes over $40/lb cobalt credit, right now cobalt is $15.  Perhaps we can achieve other credits, like scandium, that would help a lot.  But excluding that for now, these present nickel and cobalt prices are not where they need to be for this project to achieve viable numbers.  I guess if the market is going to need these battery metals in increasingly higher volumes, the prices are going to have to come up significantly, in order to make it economical to produce.  Right now we are struggling because the numbers don’t add up.  I know if you produce the sulphates you get some kind of premium over the spot metals price.  Not sure the present premium on nickel and cobalt sulphate, I’ve found those numbers difficult to come by.    
 
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