From what I could calculate the C1 costs to Kagara were pretty...

From what I could calculate the C1 costs to Kagara were pretty low and even as KZL paid WSA operator fees, nickel was still a great cash earner and had a pretty high margin compared to other metals KZL mined of late e.g. zinc. I think that what WSA loses with the capital outlay and operator fees, it gains in significant profitability.

I know KZL's C1 nickel costs for the last few quarters were about...based on ore mined etc.

2.70, 3.63 & 3.12 - averaging 3.12 YTD.

I guess they were selling this ore to WSA for perhaps $5-6 lb, who were reselling at slightly off market to BHP etc for another $2-3 lb...current price $8.80 lb.

They should thus eliminate about $3 lb in margin.

LL produced about 1744t of pure nickel a year or 3,843,776 pounds.

So I guess WSA pays -80 mill, loses -20 (I think this was over 3 years)?

But gains +11.5 mill per annum in extra margin

- Plus boosts reserves by 52,900t (@100% nickel) of higher-grade ore 4.8%,
- & adds 87,680t (@100%) of lower-grade ore 1.37%
- and acquires rights to 330 sq km of exploration tenements throughout Forrestania etc.

Also, because of greater operational efficiencies and scale, WSA could probably increase production and lower C1 costs further.

I think WSA will be a buy after the dust settles.