RE:$50 million$ to build the second ramp at Beta HuntFarquar wrote: So, here we have Krr saying that starting in January 2022, they will begin a major 50 million$ (Australian dollars) project to build a second ramp at Beta Hunt that will then give Beta the capacity to access up to 2 million tons of ore per year. When this ramp is completed , it should coincide with the other major project which also begins in Jan 2022, that is to bring the mill capacity from 1.6 mt/year to 2.5 million tons/yr......So, the company is spending 50 mil to increase ore capacity to 2 million tons/yr..( 2 million tons x 2.6 g/t = approx 168,000 ounces/year)...That's a significant amount of gold produced in just one year! The fact that management is doing this tells me that they know there is millions of ounces of gold at Beta Hunt, otherwise why spend so much capital only to run out of gold in only a few short years? With the 2 ramps, maximizing nickel production could possibly be achieved without impacting gold production one bit ....Right now nickel is 20,000$US/tonne...If krr can produce let's say 5000 tonnes of nickel per year at a conservative 19,000$ price with an AISC of 5700$ /tonne, they will generate about 66.5 miilion$US of profits per year or about 84 million $cdn which if you look at in terms of by-product credits, would reduce the AISC on 200,000 ounces of gold by 332$ per ounce..It would be nice if Huet could tell us such things as , what is the maximum nickel production possible, considering there are limitations on how much ore BHP would be willing to take from Krr ....there are several questions that I have concerning the nickel situation...I'm hoping interviewers start asking better questions in the near future....
Farquar, really appreciate your analytic thinking! Me I'm just a cheerleader and hopefully we'll both profit soon because this company really is undervalued IMHO!