At this stage, patience is the best policy. When investment anxiety strikes, it's best to go back to the previous market sensitive announcements and reread them. It'll remind one that ARL has several proven positives...
Leadership team with dedication and skills. In addition, ARL has first rate project partners in SMM and MC for KNPL's laterite Ni mine development. Moreover, SMM/MC committed to pay approx. $100M for the DFS cost. This commitment alone says a lot about the value of the KNPL mineral asset. (In this regard, I do harbour a lingering hope; being that the SPV need to use only its 50% share of the KNPL mineral asset as collateral to secure financing. If so, then it would mean that ARL's share would be free from claim by the Japanese financiers. It's just my thought and hope. Why such a thought and hope? Because the size and economic value of the KNPL mineral asset is indeed impressive, and SMM/MC are more after longterm security of supply. Their big profits cones from downstream processing and sales.)
Very encouraging PFS numbers that are supported by the separate SMM/MC DD. The purpose of the DFS is to finesse the tech details which have been professionally and satisfactorily covered in the PFS and subsequent SMM/MC DD. By finesssing, I mean to narrow the PFS margin of error from 25% to the DFS' benchmark of 15%. The DFS is not a challenge audit imposed upon KNPL to look into the veracity of the DFS or DD. Important to bear in mind this distinction.
World-class mine production economics, volume and LOM. KNPL's MRE focusses on Ni and Co, but there is Sc and possibly other economic polymetals contained within the ore. The C1 cost is $5K-$6K, while the AISC is approx. $7K, both per ton. Laterite Ni ore grade alone does not tell the full story. Also, factor in the forecast future Ni demand vs supply shortfall from year 2028 onwards, which is about the time KNPL starts mine produciton.
On a separate matter, I touch briefly on the FUDs... There seems to be a standard playbook used by FUDers to destroy the share price of highly promising junior explorers/miners. Their ploy has a very noticeable pattern when one steps back and looks critically at the repetitive contents of their posts. The playbook undermines every stage of exploration, discovery, MRE, PFS, DFS, FID, financing, project partners, offtakes, haulage logistics, etc. In other words, the FUDers' goalpost continuously changes when the previous FUD is disproven by quality management and successful milestone achievement.
FUDers say to DYOR. When that is done and the conclusion reached is different to their agenda, they are unhappy and go on the attack dog mode. But they are just cowardly types hiding behind anonymous post and not having the integrity to admit that the future is uncertain and so every investment scenario (including the FUDers') is subject to assumptions.
If FUDers are as good as they claim, why are they even on HC? They should be multi-millionaires by now and would have more worthwhile pursuits in which to channel their time and energy. How many multi-millionaires do we know who spend their time and energy boasting and spreading FUD on HC? We know them by their words and actions.
Amusing thing is that the FUDers don't even realise how their own words and actions have betrayed themselves. The other amusing thing is that LT shs are open to meet up (at Diggers and Dealers, maybe) and identify themselves when their shares investments bear great capital returns. You know, chatting over a couple pints and reminescing, appreciating, joking, laughing, etc. The FUDers won't have the luxury of such camaraderie because of the trail of damage they tried unsuccessfully to cause, but which resulted only in damage to their own reputation, would make them too embarassed to reveal themselves.
ARL Price at posting:
37.5¢ Sentiment: None Disclosure: Held
(20min delay)