Post by
Farquar on Dec 15, 2021 11:40am
Dumont nickel is way too low grade at .28%
Dumont may be one of the biggest nickel deposits in the world, but it doesn't matter one bit if the grade is too low. Nobody is going to pay a billion $ to Waterton for Dumont. At present nickel prices each tonne of rock moved and processed would only fetch about 2.8 kgs of nickel for 54$US /tonne gross revenue and this is assuming 100% recovery , which of course won't happen... Nobody is going to give Waterton 1 billion$ and then have to spend another 2 billion$ in capex to get this mine producing in big enough volume to even make money. Ok, sure there are cobalt credits but it would still take many many years for let's say a BHP to get a decent return on their investment.. I for one am glad , that Krr got out of this property...Too much effort, labour costs and capital to move and process 1000 kg of rock for a measly 54$ gross revenue.. And the company that buys Dumont has the added risk of Nickel prices heading much lower...Do you know how much nickel would have to be produced just to pay for the capex? It's many many years of production...Having said all this I obviously hope that Waterton finds a sucker , er I mean a buyer for Dumont , so that Krr gets some more money from the deal....I hope Krr gets their 35 million or 40 million and that will be the end of it....
Comment by
materialsgirl on Dec 16, 2021 5:46pm
Tthe grade is so-so However, it is open pit and at a certain nickel price the payback could be good. However, it is no place for small fry. It is more of a BHP kind of asset. mat