wsa far richer than jubilee mine

Got this off the Jubilee (JBM) site. Provides basis for WSA mining costs.

However, when one considers:
1) Whilst the total Ni metal discovered at JBm still exceeds that of WSA (for the time being), the average grade of ore at WSA is much richer than that of JBM.
2) Many WSA drillholes have revealed massive Ni Sulphides grading 8%-14% Ni. JMB can't match this at any of their operations/deposits apart from the very good 'ALEC MAIRS 2' deposit which has 60,700 tons ore averaging 12.9% Ni. It was THIS find that made Xtrata take notice. The PROSPERA deposit at JBM is their next best (by far) with 52,000 ton Ni at 4.5%. This is located at 500m underground. JMB had already mined a fair amount of the richest ore body BEFORE Xstrata made teir bid.
3) However, 60% of ALL JBM deposits are classed (by JBM) as 'Low Grade' and average a meagre 0.7% Ni. Compare this with WSA where most strikes average 6%+ and WSA are currently mining ore with average of over 4.5% Ni. WSA dosen't even bother to count (include) their deposits with under 0.5% in their statistics.
4) That WSA (unlike JBM) has very wide seams of easily mineable CONSISTENT ore..... hence making extraction far easier and cheaper.

So knowing the above, and using JBM figures below.... it is logical to assume that WSA costs will be significantly lower than those of JBM.

Unit Costs – A$/lb Payable Nickel
September Quarter
Mining A$2.42
Milling A$1.06
Administration A$0.90
Transport A$0.22
Smelting/Refining (net of by-product credits) A$1.59
TOTAL Cash Operating Unit Cost A$6.19/lb.
Royalty A$0.66
Amortisation, Depreciation and Rehabilitation A$1.42
TOTAL COSTS A$8.27/lb

WSA have provided a schedule showing that their costs are A$4.96/lb to produce Ni concentrate at the refinery gate!! Concentrate is worth 80% of Ni metal price. Nickel price is currently A$14.60/lb. Hence, profit margins of WSA will be about 58% with total costs of A$6.10/lb. Incredible for any mining enterprise except a middle east oil well.

Xtrata paid A$3.1 Billion for JBM. Currently WSA has market cap of 1.2 Billion including A$170 million in CASH.

I reckon with the constant stream of new strikes.... some with grades of an incredible 14% Ni metal content..... WSA is worth more than JBM. With 167 million shares and about 5 million options a bid of $4 Billion would value WSA shares at A$23.25 per share.

I'll take $20 and i feel the bid will come within next few months.