to test 840, page-3

jbm v mcr the big picture mincor production 12,500 T

cash costs $5/ounce

Ni Price (Aud) = $16/lb

Ni cash costs av (Aud) = $5/lb

Margin (ex hedging which is small anyway)

$302M Margin

Reserves ~50,000 T Ni, with upside from Carnilya and possible extensions

NPAT @ Ni $16/lb = roughly $170M or so

JBM costs = $2.20 USD * 1.4 = $3.08

Reserves ~ 400,000 Ni contained (350,000 is from low grade nature)

Ni production next year

9000 tonnes

9000 * 2.2 * [16-3.08] = $255M margin
or around $120M NPAT approx


So clearly here JBM is valued higher due to its reserves, mine life, exploration upside, and lower cash cost of mine

But still there is a frightening gap, as Mincor has a lot of untapped exploration upside as well!