Am invested in CTM who are about to produce a "value added" scoping study in May to look at the viability to produce nickel sulphate from the nickel concentrate which the "base case" scoping study has already shown as being highly profitable.
There is not much information out there (unless I didn't look hard enough!) which shows a similar SS/PFS/DFS study producing the "final mile" of product to achieve the full nickel metal price or even the nickel sulphate price.
I came across the 2017 BHP Kwinana presentation regarding this topic, but am not sure if I am looking at "apples and apples" as a comparison.
Is anyone able to shed some light on this topic as CTM has been quiet about what this "value added" study might financially show. Indeed Sprott, who are one of their major investors, hasn't tried to financial model it in their published broker reports, so the market is very much left in the dark about the potential financial outcomes of this "value added" study.
In particular, the BPH capex of USD43m to produce the 100ktpa of nickel sulpahte.....can this capex amount be be interpolated so that we might be able to gauge what the capex might be for CTM's 20ktpa of nickel sulphate?
I'm sure its not an easy answer here, but any commentary would be useful, as a trading opportunity could be in the offing for CTM because the "value added" scoping study has not been financially modelled anywhere in the market, and the upside is likely to be significant, when published in mid-May.
CTM nickel sulphide project is in Brazil which has very cheap electricity and access to water etc to make this value added proposition a distinct possibility.
