Another one takes a...

Another one takes a hit!

https://www.mining.com/first-quantum-to-halt-ravensthorpe-nickel-mine/

Ravensthorpe nickel mine- 30,000 tonnes nickel and 1,000 tonnes cobalt MHP ( Mixed Hydroxide Precipitate ), produced last year. That project has a reserve of app. 960,000 tonnes nickel ( 189Mt at 0.51% ore grade using a 0.3% cut off ).
It has 56,700 tonnes of cobalt at a grade of 0.03% ( in the same 189Mt ).



ARL has- just in the Goongarrie hub- a reserve of 1,365,000 tonnes nickel ( 194Mt at 0.7% using a 0.5% cut off ).
It has 99,000 tonnes of cobalt at a grade of 0.05%



Therefore we see ARL has 40~% more nickel at a 40~% higher ore grade and over 75% more cobalt at a 60% higher grade.

All things considered equal- even though with a newer processing plant ARL would very likely have a better outcome - we’d have to conclude that at a basic level our operation would be more attractive with less mining needed to produce a tonne of end product especially with a higher credit ( cobalt ).

We must also remember Ravensthorpe isn’t closing down- it’s just going to process its stockpile for the next 12-24 mths.

It reminds us of the never ending cycle-
high prices > rush to production > surplus knocks out less efficient mines > surplus becomes a deficit > higher prices & we’re back where we started.

It also tells me that if it goes ahead, the Goongarrie Hub will very likely out compete some of the operations that are in production today. Then there’s the other 5~ million tonnes of nickel outside the hub to be worked through!

Sumitomo has existing nickel operations. It knew exactly where the market was headed back when it first entered in to the current MOU meaning they saw what was coming well in advance & decided that approaching us was a smart move. Then there’s Mitsubishi- they use a lot of stainless steel and plan to expand their battery output too!

https://www.mitsubishicorprtm.com/japan/english/sales/ferrous_raw_materials/stainless_steel_raw_materials.html

If they thought it worthwhile to pursue nickel opportunities when the surplus was building it’s logical they’d see even more reason to pursue those now as prices have lowered ( possibly even cheaper entry for them ), & the next deficit gets closer.

https://www.chemanalyst.com/NewsAndDeals/NewsDetails/mitsubishi-corp-seeks-investment-opportunities-in-nickel-and-lithium-projects-17057

April 2023- announce plans. July 2023- enter in to MOU with us.

The more we research the more we see why those two companies approached ARL.