What next?, page-4

Its a pretty obscure listing for a start, but the few who follow the Scandium story are probably locked up in Cleanteq. where the Scandium grade is 2.4 times higher.

On the other hand Sconi's ratio of cobalt to nickel is attractive as the latest announcement shows.
The 20 tons will yield 160 kilos of nickel sulphate, 20 kilos of CoSO4 and 5 kilos of Scandium. At current prices and assuming a scale up to 700,000 tons that would be revenue of approx. $100m for the Ni and Co and $260m for Scandium assuming $1500 per kilo Sc, the assumption CleanTeq makes for market pricing. This is significantly less than Sc atrade at $4,000 per kilo recorded in March.
What this equates to in cash flow after tax and capital pay-back we're still to find out but as this is a conventional processing plant it looks like a cash flow of about $100m. Metallica has run the numbers on the processing previously and it seems this is relatively pure ore with the only metals dissolved all being high-pay metals. There's no iron to devour the acid.

VW has just requested fixed price quotes for supply of Cobalt for an equivalent sized battery plant to Tesla' Nevada plant. This may be a difficult tender for most new suppliers due to lack of certainty about starting dates and production of their primary metal.

As Sconi could be in small scale operation in 6-9 months and supplies from a reliable jurisdiction it may be able to demand a relatively full price for its Cobalt given that it can fall back on >50 years of supply if necessary following the recent application for an expansion of Sconi's permit area by a factor of 10. Flemington is also likely to be similar in scale and grade to Syerston next door as we will see in a few days.

AUZ would probably fire up if it also announced a rapid scale up of Flemington where the Scandium grades are 2-3 times higher. From the announcements it seems that AUZ has a few options about whether it starts Flemington late or sooner.

The key may be when off-shore buyers come into the register. There's one or two already it seems, but keeping a low profile.