Valuation?, page-83

Hope you can clarify a few things for me. NIC are processing the saprolite ore to make NPI which I presume would sell at a significant discount to the LME contract price which is for 99.8% pure nickel. NIC seem to be selling their NPI for reasonably close to the LME rate - US$14,200 for the December quarter where the average LME price was around US$15,500. Canaccord Genuity calculate their target price using 85% of the LME nickel price under the new arrangement with Tsingshan. Seems odd that NPI with a low percentage of nickel would command 85% of the LME pure nickel price - but I obviously don't know enough to comment.

Is there any reason the saprolite ore cannot be used for producing nickel for the green revolution? Too high iron content / too expensive to process? Is the processing of limonite ore through the HPAL process significantly cheaper?

As I understand it, the limonite is removed overburden so there must be a fairly sizeable stock of limonite stored somewhere. Another potential profit centre not yet calculated into the value of NIC?

Providing the Indonesian government doesn't do something silly and there are no natural disasters, NIC seems like a very solid investment into the future. Once the Angel RKEF kicks into production I would hope there would be a decent increase in the size of the dividend. With nickel price forecasts out to 2030 looking favourable, NIC stands to make substantial profits in a relatively simple operation.

Appreciate any comments you care to make, or anyone else. Cheers.