wingellina feasibility study, page-7

I think the key will be the relative costs to other producers ,particularly laterite producers .
What we know from previous announcements is that Wingellina is very low in Mg0 ,and the estimate for sulphur is around half that needed for other comparable laterite producers .
If Wingellina cant make a go of their project due to high sulphur costs then most other Laterite producers will be long gone ,as their relative costs will be much higher .
Nickel sulphide operations are dwindling and will not be able to keep up supply ,so I believe the nickel price will need to rise in the next 12 months to take into account higher costs of laterite mining ,or new operations will just not happen ,leading to a fresh nickel supply crunch .This would happen about the tine MLX would be starting Wingellina ,2012 .Either way Wingellina is better placed than most of the competition .
As for credit lending nervousness ,the chinese have ample cash, and Jinchuan will be the conduit for this cash to flow into essential feed for their massive growth .
High capital costs are another thing that the markets will have to absorb ,because its not going to change .Again it is all going to be relative .If the project is profitable ,it will happen .
With labour shortages ,we are just beginning to see major layoffs in a number of companies such as Perilya and CBH in Aus . There will no doubt be other casualties in the mining industry in the next 6-12 months ,and I believe this will take somne pressure away from that situation .
It is rather short sighted to look at the present low Nickel price to make decisions based on that for 2012 .
The mining industry does not work like that and the chinese in particular take very long term outlook to these situations .
Make no mistake ,Wingellina is a very valuable deposit ,that has been highly underestimated by short sighted Aus investors ,and this shortsightedness is not without precedent .FMG is one example .
Rentails will be huge for MLX and is the next cab off the rank in MLX's growth plans .
Phosphate is the other area that MLX have clearly stated their ambitions lie .I am eagerly awaitng reports on the progress on the Agaton sands project, hopefully very soon .