Nickel - Why Hpal Projects Can't be Built for Less Than $1Bn
Matthew Gordon, Ptolemy Capital
9 Months ago
Interview with Industry Commentator Mark Selby, CEO of Canada Nickel Company
Matthew Gordon: If someone's pitching to the market, they can build a HPal operation for less than $1Bn. You've got to ask does that makes sense to me.
Mark Selby: There's been one successful person, and that's the cheapest. They've built multiple plants. They built it in the Philippines, which is a very low-cost place to operate. If you use that as a benchmark. And then scale it up from there. If you're in a higher cost country than the Philippines, then that cost should go up. They only made an intermediate, they shipped an intermediate product that went to their existing refinery in Japan. If someone's going downstream and going to a final product, that should be another chunk of higher cost. Because some of the less successful plants, if you look at some of the CapEx numbers, they ballooned to $7Bn-$10Bn before they started to work even close to properly. So that's the upper end.
Crux Investor is a new market insight channel for those interested in understanding the junior mining world and opportunities to invest. Its purpose is to cut through a lot of the jargon, bias and bluster that is prevalent in this sector and hone-in on the most important factors that can indicate whether a company has a strong footing for growth and success.
Get an insight into how institutional investors evaluate the natural resource market. Hear from some of the most influential and successful people in the industry about how they made money investing in public markets. Learn key strategies, tactics and questions to allow you to make better, informed, comparative assessments.
Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situations or needs. You should not rely on any advice and / or information contained in this website or via any digital Crux communications. Before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.