ClarificationCleareye,
I've emphasized nickel because as a byproduct of KRR's gold mining operation it is/was going to significantly improve the bottom line. I've seen $100 to $200 per gold ounce being mentioned.
The company is/was very positive regarding what nickel would/could add to profitability and has been counting on it.
If BHP closes their facility, which is most likely, Karora will have no place to go with the nickel ore.
It's not a matter of BHP improving the operation. The plant produces high quality battery grade nickel, but with nickel prices where they are, BLP is losing money hand over fist
The CEO and the CFO have indicated that for their purposes the operation has become worthless.
They have taken an impairment which is tatamount to writing it off.
They implied that care and maintenence of the operation is imminent.
I would think they'd love to find a buyer, but who wants to buy a losing proposition.
Three thousand jobs are at stake to boot.
This type of thing is happening with some large gold mining companies as well. Newmont has taken impairment on a half dozen of their properties, and is trying to sell them. They want to transition to Tier One only projects.
Gold stocks are cheap, and I think some mining projects will be going at firesale prices as well.