RE: Nickel24 Oct 2018 22:45
The previous studies are based on $12000, which is where it is now. This is not a poor price, just not as profitable of a much higher price obviously, what is important is value in the mine build and the returns from that and you can be a long term low cost producer not a marginal producer.
Higher prices are a bonus.
The DFS does not need a higher price to be better, the fact they are putting in a second supply is where the value will increase, it is not relying on the nickel price to be better.
The mine will not be operating for a while yet, it's the price in the future the market should be basing value on and you invest for future in all investments, so whilst there is plenty of value in this project at current nickel prices, I'm sure one would be investing in this nickel play for the bonus of future prices, you wouldn't be investing if you thought it would be $8000 in 2 years.
If it was $20k now you wouldn't be at this price now either, hence value at this price.
So with respect your post sounds positional because of the naivety it suggests in respect of what is considered to give a good result.
The DFS also moves the project into a new phase which brings opportunity for value enhancing events, it derisks the project more (or to maximum amount it can be), puts more resource into commercial zone.