Nickel concentrate is currently priced around 85% of LME whereas...

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SnowballKelvin

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05/09/21

16:45

Post #: 55844936
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Originally posted by entropylord: ↑

Kelvin,
Yes, but I am a little more wary of processed that haven’t been fully developed. Some don’t scale up properly, some suffer from impurities, or mechanical, corrosion or reliability issues when run continuously, etc etc. Or just turn out to be too costly.

However at second glance it doesn’t look like they are pushing too far from the known or too far into known danger zones (such as high P&T autoclaves), but still wary given they’ve only done a few kg. Much happier if they’ve done some pilot plant trials at some metallurgical institute or something.

Then there’s always the economics question for any such immature process.

But yes, as Ash says it could help IGO feel comfortable to pay more for IGO, as if it works then Cosmos would come in at a good time for them, noting WSA is only intending to do short offtake agreements initially. Whilst they could well pay more for this reason, personally I’d feel that was unwise given the maturity of their process.
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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
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Nickel concentrate is currently priced around 85% of LME whereas...

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Pilot Energy awarded $6.5M in govt funding for Mid West Clean Energy Project

Dart on-target for high-grade structures and multiple reefs at VIC's Ruthworth

iTech Minerals flags high-grade rockchip finds, boasting one sample at +18% copper. What lies underground remains to be seen

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