Flaw in Stifel report?

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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Flaw in Stifel report?

posted on Sep 26, 2021 11:55AM

I know nobody agrees with Stifel's analysis that $0.55 is a "fair" price, so I had a look at the report (Appendix C of the BOD circular) and noticed their inputs for the NPV included price forecasts for all the metals in Eagle's Nest (Ni, Cu, Pt, Pd, and Au) out to 2030 and beyond.

The values in the report all plateau at 2025 prices! With Copper, Palladium and Gold decreasing significantly between now and 2025.

Yet we see new articles and reports almost daily about how nickel and copper prices, in particular, are going to soar due to demand for EV's, etc. and insufficient supply. All my searches turned up forecasts consistent with that theme, prices for all the ROF metals are expected to increase beyond 2025.

Unfortunately I can't accsss the Roskill data Stifel claims they used, but the report appears to be a case of "garbage in, garbage out".