Nickel concentrate is currently priced around 85% of LME whereas nickel sulphate has a premium on top of LME. I think the EBITDA margin could reach 80% and maximise the value for investors.
Only BHP has nickel sulphate plant in ASX and it requires smelting with higher carbon emission & costs.
Also, there are HPAL plants (cost US 2.5B to build) that could even turn Class 2 nickel ore into nickel sulphate.
Yes. There will be a lot of uncertainties and risks but the reward is really big in my opinion.
WSA Price at posting:
$3.16 Sentiment: Buy Disclosure: Held