FYI, battery grade Nickel Sulphate spot price is US$4,070 per...

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cjlcowled

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04/03/24

14:51

Post #: 72733818
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Originally posted by mg97788: ↑

My understanding from the PEP is that its US$24,000 including sulphate premium.

So thats LME + sulphate premium, so roughly $USD17,000 + ~ US$4,000 (sulphate premium) = $US21,000. So only about 12.5% below PEP estimate. At US$18,000 + US$4000 only 10% below estimates, and deficits forecast into late 2020s for nickel should be ok. Cobalt estimate the main problem ~ 50% below estimates which has a significant hit on bi-product credits.

Im guessing, but i estimate they might be trying to get ~50% of the equity component required (around $600mio) through US govt grants.Alongside that, they'll need a 20,000 tonne Nickel/ x% Cobalt offtake with an Auto maker or two (GM and Toyota are my guess), and then separate scandium / cobalt offtakes with DoD et al. Potential streaming deal/ equity deal for the remaining US$300mio.

Would be great to get an update/ insight from management but they cant/wont update outside of the NDAs unless there is a material agreement / update in place

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FYI, battery grade Nickel Sulphate spot price is US$4,070 per metric tonne. Nickel content is 22%, so the spot price of Nickel in battery grade Nickel Sulphate = 4070 / 0.22 = US$18,500 per metric tonne. More than 20% below the PEP estimate.

https://www.metal.com/Nickel/201908270001

Last edited by cjlcowled: 04/03/24

SRL Price at posting: 35.0¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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