From Salmonn1 on Advfn board8 Feb 2018 21:20
salmonn18 Feb '18 - 19:49 - 370 of 374
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Jeremy was good enough to give me a call this morning. He�s very pleased with the results of the trial mining hence the press release. Among other things the trial mine allows for the probable resource to be converted to proven. He stressed that this is only one strand of five or six other work streams that are relevant to the project, so more news to come. I stressed that for me the successful reconciliation of the drill data to what is mined is the important point not the particular grade of the ground excavated. JM said in fact it�s important to test a raft of different Ni grades and other minerals as it is not just the Ni grade that matters as the ores need to be blended and the results just published are very good from that point of view.
JM, HZM have a business plan in place and the aim is to work through the FS and publish in early part of year. Permitting is also preceding but it is difficult to put a definitive date on this due in part to forthcoming elections, but the team are working closely with government officers to provide the required information.
Regarding Vermhelo, the financing was closed in January, paying for the part of the asset price due and providing two year�s of money to keep the whole project, including Araguaia moving. The Vermhelo scoping study will confirm the grades for limonite, nickel and cobalt giving a resource figure that the market will be able to put a value on.
On a general note he�s optimistic, yes the fund raise was dilutive but with the addition of Vermhelo the company is a stronger vehicle. Our shareholder base is good, the nickel price is highest for four/five years, while we have not yet created a higher share price/value he thinks we now have probably the largest undeveloped Nickel inventory in the world of a 100% owned company asset (i.e. pure nickel play). We now have double the nickel saprolite asset and regarding the cobalt, JM is keen to point to Syerston�s valuation, Vermhelo outperforms that asset by times two and once there is a resource from the scoping study the Syerston benchmark SP illustrates where HZM�s value could go and allow us to look for a partner [ for Ni hydroxide and cobalt]. However, JM was also keen to stress that the board would not let Vermhelo distract the business plan and slow down the development of Araguaia.
JM thinks a Vermhelo resource could take the SP from 4p to up to 12, in any case will allow the company to sell in to the stainless steel and battery market. The story around batteries is good as it focuses the investment community back to nickel and brings people to HZM, giving us a window to raise the finance. The significance of a �100m market cap� is that institutional rules do not allow them to consider smaller companies and we need them onboard for finance. JM is looking at HZM�s relative position on AIM. Out of approximately 121 mining
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