RFC Ambrian - Nickel Projects Review

For those interested to read how Wingellina compares to some of its peers in the nickel space you can read the research report by RFC Ambrian - see link below.

http://www.rfcambrian.com/publications/system/files/equity_publications/RFC%20Ambrian%20-%20Nickel%20Projects%20Review%20-%20April%202023.pdf

Executive Summary
In November 2022, RFC Ambrian released a comprehensive sector report on the nickel market - ‘NPI Remains Key to the Outlook’. The report analysed supply and demand forecasts and discussed some of the many assumptions and sensitivities around nickel market dynamics. This follow-up report builds on the sectoral overview to take a closer look at nickel development projects and the junior companies in the nickel sector. The focus is on new projects, outside of Indonesia and China, that have the potential to come onstream over the next decade.

The report also reviews recent nickel M&A activity, looks at the key issues facing the development of new nickel mines, and examines nickel development projects where future M&A activity could take place. We have identified 24 nickel development projects with resources of greater than 400 kt of contained nickel. We believe that this is a level of resource which has the potential to produce a mining operation with production of at least 15 kt/y over a minimum of 15 years and is a size that may be of interest as a takeover target of a larger company. Of these 24 development projects, we believe that 20 of them have the potential to involve third party M&A activity.

We conclude that there are just six projects with a ‘High’ possibility of third-party involvement. These are: Kalgoorlie, Central Musgrave (NICO), Araguaia, Kabanga, Jaguar, and Julimar (listed by resource size). This has been based on our assessment and ranking of several project factors, including the potential size, economics, stage of development, exploration progress, permitting risks, location and geopolitical risk, resource quality, the structure of the existing shareholder base, and other project issues. This report also examines and summarises the latest exploration developments of these projects and compares different parameters of the projects’ published feasibility studies.