Although I can understand shareholders frustrations with the changing timelines and changing plans regarding development ready second half 2023 etc, the structure of the company hasn't changed at all.
What I mean by that is the fact that for a very similar price to the IPO @ 20 cents (okay, some dilution) the nickel side of the business is alot more progressed and all the goals set out in the initial presentation back in 2021 have either been achieved or are looking like they will be achieved.
Production ready by the end of 2023: Seems to be on track. De-watering should be just about done if not already done. Hopefully an update on that. Feasibility studies in play etc.
Larger resource and higher confidence: Higher confidence resource has definitely been achieved and also a larger resource. Still plenty of assays that haven't been included in the last resource upgrade so plenty of further upside.
PGMs: Palladium and Platinum have been quantified.
In fact, the board has managed to achieve a few things that weren't even on the cards with the following:
Lithium resource: I read an announcement from GL1 recently and they said there is only 12 ASX companies with a lithium JORC resource from memory and they have two of them and very few are 100% owned.
So here we not only have a solid Nickel resource that is in full feasibility stage and offtakes are being negotiated, but also one of 12 ASX listed lithium resources with offtakes in deep discussions.
And yes, even for me the grades are on the low side but considering the simple mine plan and low/minimal overburden and the language used to suggest that offtakes are nearing completion and the 10% rise yesterday, I believe they will be able to pull it off.
All for a MC of $71M after a 10% rise yesterday.
So nothing in the timeline has changed since the original timeline was set out and I can't fault the board for trying to even potentially beat the forecasted timeline which it looks like they tried with the language ever changing over the last 7 months.
So for me personally, this is one I put away long term and with the minimal shares on issue and low MC, I will hopefully have a solid return by 2025+.
Furthermore, as you can see from the below news articles, the M&A scene in Nickel is strong and firms are willing to pay whatever it takes to secure resources.
Excerpt from hotcopper news on the MINCOR thread below:
"We do like the idea of bringing it back together," Wyloo CEO Luca Giacovazzi said of the prospect of consolidating the district. "Do we have appetite to do more deals? I’m always going to answer the same way: Yes."
"Nickel is a big focus for us. I wouldn’t say it’s just nickel but I would say nickel is our main focus," he added.
Wyloo expects to build on Mincor's five-year mine life given the nature of Kambalda's geology that makes it the country's top nickel district, he said.
As well as BHP, Widgie Nickel (WIN) and Lunnon Metals (LM8) also have nickel projects in Kambalda.
Mincor's nickel resources could help feed a A$600 million to A$1 billion precursor battery chemicals processing plant that Wyloo is planning to build with miner IGO (IGO) in the country's west, and that it hopes to make a call on next year, Giacovazzi said.
Australia is looking to build a critical minerals processing industry to reap more value from the electric vehicle battery chain.
Excerpt from AFR article thread below:
Billionaire Andrew Forrest is willing to invest “whatever it takes” to become a global force in the supply of nickel as his privately-owned Wyloo Metals finalises its $760 million takeover of Mincor Resources.
Furthermore, just the other day, DVP is looking to acquire ESS in the lithium space. MIN has a shareholding in both ESS and DVP and Faraday is located approximately in the middle of My Marion (MIN) and the ESS project that DVP is acquiring.
Another note is the fact that FMG are looking at replacing there mining haul trucks with battery powered ones in 2026. How much nickel, lithium etc will they need for their batteries considering the size of the battery packs in question for each haul truck. With the growing demand of EV's and the lack of supply and supply taking longer to come aboard, prices will most likely rise due to basic supply-demand. Now add demand that probably wasn't calculated like the demand for the below and the expected supply deficit would probably be even more significant.
So WIN is near term development ready on both Lithium and Nickel, two of the most crucial resources in the EV space that is forecasted to experience significant demand growth year on year.
Refer to the below to get an idea on the size and number of battery packs for one haulage truck. Now imagine that across some of the biggest mines throughout the world and you can get a sense of the demand that is coming.
All in my opinion and all personally how I think. Please seek professional advice from someone qualified and not a HC forum participant like myself.
