Well I suspect soon is crunch time for Mincore, regarding valuation. Some suggested an offtake of 600k/pa of ore at 3.9%NI....My calculations (pl correct me if I am missing something on my reasoning) are for 23400k of contained Nickel at say...$30000/t equal Au$ 982 Millions revenue per year. If the above makes sense, Mincore would be hugely undervalued, and indeed I suspect something is missing with my reasoning. But in the absence of disclosure of financial terms for offtake agreement with BHP, is anyone guess and I mean anyone, because I have not read one post able to state how much money Mincore will make this year. Indonesian Ni ore sells for $50/60 per tone, is much lower grade but is way much cheaper than $1170 implied by my above calculations.. What a world of difference is there between Mincore and Nickel Mines. If the former is a total guessing and hoping kind of investment, with Nic you could calculate costs, revenue and production to the microsecond, everything is openly disclosed. I suppose some investors like surprises, not bad when they are positive, but not for me.
MCR Price at posting:
$2.36 Sentiment: None Disclosure: Not Held
