yea Trees,the only information regarding operational cost will...

yea Trees,

the only information regarding operational cost will be from page 6 of the PFS released 27 nov 2009. prolly more from e coy when more is done.

key points:
- capital cost @ US$1 billion +/- 30%
- forecast operating cost of US$3.88/lb
- depending on Ni price, project is Robust
- payback of capital within 5 years following ramp up to full production

current prices of Ni stands at US$9.75/lb or ~US$19,500/ton and cobalt at US$40/lb or $80,000/ton.

from the independent study (found on resmin.com.au):
- An analysis of the fundamental economics provides support for the conclusion that the project is economic using the forecast price of US$19,400 per tonne nickel, US$58,200 per tonne cobalt, and a USD/AUD exchange rate of 0.8. The financial model yields an internal rate of return of 16% with a net present value of US$270 million (10% discount rate).


at current prices and exchange rates, e project is economic.

after looking thru past comments/ announcements. i feel that RMI has come a long way since those "hype days" and comparing the MC at that time and now and the work done since, i view that e current MC is undervalued.

will try to do some churning of numbers sometime.

get back to you guys again, gonna go to the Ferragasto event at five dock soon. have a good day.