PFS Expectations

Hi all

I was wondering what sort of PFS outcomes coming up would make you smile.  Dug back through the announcements to 2013 for the scoping study.  Extract in italics below.  My thoughts (admittedly from a low experience base) are;

- Quite a low output of Co in the scoping study in comparison to Ni - do we expect this to be a lot higher given the heavy focus on Co these days?
- Ni price is a bit lower now but climbing
- No Co price assumptions in study but I guess due to v.low Co output and contribution to revenue
- The $A has dropped against the US$ which will increase capital costs but also $A revenue - so a positive?
- Very healthy 37% IRR which should improve?

Key Outcomes of the Scoping Study

Operations

Optimum start up project: 1.5 mtpa Combined Heap Leach - Direct Solvent Extraction and Electrowinning Process Plant.
Defined resources support minimum 20 year operation with potential to extend further or scale up production.
Annual Production Rate: 14,000 tonnes nickel cathode and 540 tonnes cobalt.

Financial Optics

Nickel Price:  US$10/lb  Exchange Rate:  US$1.00 : A$0.85.
Operating Cost: US$5.68/lb nickel (includes royalties).
Capital Cost: A$460 million (includes contingency of A$103 million).
Operating Surplus: A$2.8 billion pre tax (includes capital payback).
NPV: A$934 million pre tax (10% discount).
Internal Rate of Return: 37%.
Pay Back on Capital: 2 years.
Low capital intensity: US$12.75/lb annual nickel production.