The nickel alone

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Hobbit

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The nickel alone

posted on Sep 11, 2021 11:38AM

Continuing The Voisey's Bay comparison from ManicPower's post...

I don't know anything about the mineral content of Voisey's Bay, other than the 2007 estimate of 141M tonnes at 1.6% Ni (so 2.255M tonnes of nickel).

So, looking at just the nickel:

In February 1996 Ni was $7717/tonne. So at the time, VB had $17.4B of Ni, and Inco paid $4.5B for it. A factor of 3.87 (17.4/4.5).

Now, Eagles Nest has proven and probable 11.131M tonnes at 1.1% Ni or 121,441 tonnes of Ni alone. On Sept 1, 2021, Ni was $20426.5/tonne. So the value of the Ni in Eagles Nest is $2.5B.

Applying the same 3.87 factor Inco used for VB, any buyer should be paying $646M for the Ni in Eagles Nest, or $1.29/share (based on 500M shares).

And that's just for the Nickel in Eagles Nest. Add in the Cu, Pd, Pt and Au and they should be paying > $4/share for Eagles Nest alone.

And then there's all the chromite...

oh, and that's all real US dollars, not Monopoly money.

If BHP and Wyloo don't smarten up and start talking some real dollars soon, someone else is going to do the math and steal the prize from them.