QPM Chart, page-3865

This thread is garbage and I certainly don't want to take part into all the non-sense happening here but this post is just plain wrong from a FA point of view.

QPM is buying limonite ore that has very little processing avenues outside of the DNI process. Essentially, we will be buying tailings that were seen as waste previously by mining companies. They will be desperate to sell it as tailing dams are costly to monitor (ask Brasil), pose environmental issues like metals leaching into water systems, etc and selling it means recoup some of the stripping/mining costs.



QPM is in a position of strenght here. That's why the Ore supply and logistics part of the OPEX represents only around 10% of the expected annual revenue.
The value-adding of the business is astounding as there will be a factor 10 between raw purchases and sales of the company.

In the nickel market, different products trade at different percentages of the Ni metal contained value.

Ores trade at 10-50% depending on type (Saprolite, Transition, Limonite or even sulphides), concentration, impurities and by-products.
Concentrates usually around 50-80%.
MHP 70-85%.
Ni metal is 100%
Sulfates trade at 10-25% premiums.
811 precursors at 25-40% premiums for example.

So QPM will be buying a very low value ore and pay 10-20% of contained Ni metal in value and will turn it into 110-125% via sulfate production plus by-products.

As the market tend to use percentages with some small variations for these products, the margins are absolutely not static. They grow linearly with the nickel price and the project economics definitly depend on commodity prices to be attractive.

A nickel price of 26k$US vs 15k$US means we will pay our ore a few tens m$ more but we will be making hundreds m$ more in the process.