Hi POStersWith the LME nickel stock approaching a low 150,000...

Hi POSters

With the LME nickel stock approaching a low 150,000 tonnes and falling and a nickel price rebounding to $8.65/lb, I would say things are looking pretty darn good.

I note Blackstone Minerals MD Scott Williamson saying at last week’s Nickel Conference, “explorers need to find, discover and develop 1.5 million tonnes of nickel to feed the demand that is coming.” Other potential good news; Nickel may be added to the U.S list of critical minerals shortly and I am also keenly awaiting the announcement of Golden Swan resources.

POS is so well positioned and still under-priced to buggery IMO. Whatever the realised AISC or the breakeven price, I think POS has generally used conservative and prudent calculations to determine the economics of moving into production. Based on previous modelling, anything above $6.50/lb represents decent profitability and the most recent company studies indicate relatively modest capital requirements for funding plant refurbishment.

Commodity pricing has been rather volatile this year, however, I do believe we now have a floor price for nickel of at least $8/lb moving towards $9/lb for the near to medium term and the probability of a sharp rise over time. We are in the enviable position of becoming a low-cost producer with our competitors requiring much larger capital and considerably more time to move into production.

I have held this stock for a long time folks but I am happy to keep accumulating and have little doubt that we are on the cusp of a steep climb towards TB’s legendary s.p. prediction of $1.

As ever DYOR.

Cheers

U