Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Just to clarify Luke, Ni price used is 16,400, (and 2k added to that as premium presumably) and while there might be bumps along the way, one needs to consider the “average” across a longer time frame. I doubt that will be much lower atleast whilst we seek funding for these projects. IRR is comfortably above 20%, the so called hurdle.
The cobalt price used is 35k, whilst long term consensus is 55k. The Kieserite fertiliser price is slashed to $180/t (vs current price of 380/t, to account for local oversupply). 18% extra contingency added to costs. So I think it’s a very conservative set of numbers. As usual JM is not rampy, understated and solid in his approach.
The most intriguing comment is the mention of aiming to emulate Coral Bay Ni Corp. This co includes Sumitomo and Mitsui. SMM was the pioneer of commercial HPAL. And both Mitsui and SMM have long links with Vale, as partners. Infact Vale had announced in July 2019, its intention to invest upto 5.5b in battery grade Ni projects, inc Indonesia (and some of this money with SMM).
https://theinsiderstories.com/vale-indonesia-prepares-us5b-to-build-nickel-plant-with-japans-sumitomo/
I reckon the ban brought forward will make these companies rethink strategy. It’s impossible to plan decades ahead when govts are fickle and change plans.
https://www.google.co.uk/amp/s/mobile.reuters.com/article/amp/idUSKBN1WT1P8
So I reckon Vale and Sumitomo are interested in our projects. Vermelho being in Vales backyard, I doubt they will want another major sniffing around. All my two pence. DYOR.
Futures are an indication but can change,sometimes significantly but at the end of the day it doesn't really matter-the price is what it is on the Day you Sell or Buy.If we were to develop Ar and use the profits for Ve this little company would be huge.We will not be allowed to get to that stage !
So Vermelho with a $2000 premium would be getting $18985 today.
What is the current price for nickel?
Live Price of Nickel per Ounce....Industrial Metals. Name Nickel
Price 16,985.0 0% -2.38
Unit USD per Ton Date 10/15/19 03:29 AM
Lotto said earlier that they are using the same conservative base price of $14000, but adding a $2000 premium for battery grade nickel.
When they used the $14000 base case for Araguia, we were told that such excessive prices would never be seen for many years, if ever. Well it was just months away.
Try https://m.uk.investing.com/commodities/nickel-streaming-chart?cid=959208
for "live" nickel futures pricing.
@Shear where did you get todays price @ $16200 -LME and Market both ae @$16990 1sh-always willing to be corrected F
@Joey-I am staggered you have the front to even post here after your philanthropic comments of saving others comparing HZM to SXX.I'm not sure if you are a wind up/thick/or Donald Trumps long lost dopey kid.I.E say something stupid and then when you get trashed keep on posting more rubbish to distract from the first rubbish.Well he seems to get away with it (so far).As I said to you on another site listen more and talk less young man F
You are concentrated too much on current price and not the nickel market in 2025 when this would be open for business in the world of exponential demand for class 1 nickel..... NO base metal mine is going to enjoy high IRR these days, but one like this in a deficit market with insatiable demand is worth developing. What choice does the market have?
According to their slider the NPV is above 20% even if nickel falls to 13k: https://horizonteminerals.com/uk/en/vermelho_project/
NPV in that case would still be over $1b. These are far better figures than I expected.
Possibly because the IRR is slightly lower than Araguaia, and at $14k Nickel would be just under 20%. The potential of the resources held by HZM is unquestionable, the concern is how they unlock the funding. A base case IRR of over 30% would have made it much more attractive.
I would be willing to bet that the delay in the PFS was caused by them negotiating the base case Nickel price for the headline NPV - they couldn’t have justified using $16,400 when the price was lower, we all know it spiked to over $18k recently, but today it’s back down m at $16,200, so they have been bold there. Regarding future prices over the next 40 years - who knows!
They were thorwing loads up close to bid to buy and everything looks like a sell, but it was aggressive MMs