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Picked-excellent post.I agree that if we remain independent we have a good shot at FTSE 100 status.
Many on here will remember how crazy metal stocks went in the last super cycle.We are just about to enter a new industrial revolution where "green metals" will take centre stage and the pure plays will trade at a premium to the conglomerates.With the exception of 2 small positions my entire portfolio is in green metals.I think we are all going to enjoy a great ride over the next 5 years .GLA.
Bump
Lawrence
Thanks for the post.
Incredibly helpful.
@pickedpeck, thanks for adding some meat to the bone , I would like to think people don’t think I’m ramping as I am a genuine investor here with genuine excitement at the enormity of HZM , I just feel we need to shout this from every roof top lol lol
Have a fabulous weekend
GLA
Seriously Looking Goooood xx
Like your culinary analogy, pickedpeck and an encouraging reminder of what HZM presides over / the potential when financed shortly. Being on AIM, the shs are not yet followed very closely but when they get going, they certainly should be - sasa.
Lawrence, appreciate the CAPS excitement, but Araguaia is the Hors d'oeuvre before the Vermelho main course. And for dessert the company owns an additional nickel asset in Serra Do Tapa which is around the same resource scale as Araguaia. Full production from Araguaia and Vermelho is currently forecast to be around 60,000 tons of nickel annually, but as they share a 4m ton resource base that could be significantly increased with additional production lines, particularly at Vermelho.
If successful the company will not develop a nickel mine, but a whole new glabbally important nickel district. The geopolitical importance of a resource accessible by the US and Europe and not tied up by the Chinese like Indonesia and Australia is being massively underplayed.
HZM doesn't need ramping or deramping here. This looks set to be a globally important resource company within the next 5 years, and the big miners and finance houses are absolutely aware if that. Us PIs are on the coat tails of of a development program that could potentially take HZM from AIM explorer to a FTSE100 miner with annual revenues measured in the billions.
A1 & A2 + V1 = 60,000t P. A., SdT expansion and V2 + expansion additional 40,000 t P. A. (reality check : Vale planned 46,000t P. A. From Vermelho alone from their more aggressive FS with a 40 year mine life! http://www.vale.com/china/EN/old-investors/information-market/press-releases/Pages/a-cvrd-iniciara-o-desenvolvimento-do-niquel-do-vermelho.aspx )
100,000 t P. A. Production by 2030 at $25,000 per ton is $2.5Bn revenue, about $1.5Bn would be gross profit after production costs. That's a cash factory farm let alone cow... $1Bn profit after tax, pe 10 or so, $10Bn market valuation still with upside.
Of course the mining majors know this, and at some point will pounce and buy us out. But the further the company gets, the high the intrinsic value will become. Finance is just the next hurdle on this longer journey, but it might pay to think a little bigger after some of the recent BS that had been circulating here.
1. Araguaia is a TIER 1 NICKEL project with a HIGH GRADE Scaleable Resource.
2. HZM owns 100% The Araguaia Nickel Project, one of the LARGEST deposits in The WORLD.
3. HZM is ideally suited to supply the RIGHT PRODUCT at THE RIGHT TIME into the growing battery market - RIGHT PLACE.
4. HZM OWNS 100% A GLOBALLY Significant Nickel Resource.
Nickel Price US$20,000/t
Stage 1 :
Project Net Present Value (“NPV”) increases to: US$1.127B (post tax, 8%)
Internal Rate of Return (“IRR”) increased to 36.2% (post tax)
Free cash flow over LOM (after capital payback) US$3.74Billion
Capital Costs US$443.1M
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Nickel Price US$28,000/t as seen in 2011 US$28,250/t so highly achievable with increased demand through the EV revolution!!!
Stage 1 :
Project Net Present Value (“NPV”) increases to: US$2.093B (post tax, 8%)
Internal Rate of Return (“IRR”) increased to 53.5% (post tax)
Free cash flow over LOM (after capital payback) US$6.62Billion
Capital Costs US$443.1M
——————————————
Now Look At Stage 2 With Nickel at US$28,000/t
STAGE 2 @ US$28,000/t
Free cash flow over LOM (after capital payback) US$9.96BILLION
——————————————-
HZM is probably one of The Best Investment Opportunity Of Our Lifetime
Right Place ~ Right Time ~ Right Now
News Soon Followed By A MASSIVE Re-Rate …… don’t miss out !!!