Sunrise 2024, page-79

Longstory, i did some maths on breakeven for Sunrise once in production vs PEP

PEP estimated $24000 per tonne Nickel + sulphate
PEP estimated $59000 per tonne cobalt

Based on above, the estimate was USD-0.8c per pound cash operating costs because of the significant COBALT credits in production, estimate of cost before credits was US$4.58 per pound. Cobalt credit was 1.97 equivalent.

At current pricing we have 83% of PEP nickel estimate and 50% of PEP cobalt estimate.

So current cash costs nickel (no COBALT credit) = $5.5 per pound
With 50% cobalt credit = $1 per pound

So current cash operating costs = US$4.5 per pound versus current US$ Nickel price of $7 per pound. Still netting US$ 2.5 per pound.

This is without PGM and Scandium credits included and still cost competitive with Indonesian Nickel.

Cost of production will be key in this operating environment and a key consideration for investment