RE:Bad news for VALE investorsfrs1960 wrote:
but even worse for victims and their poor families.
I can't help but wonder how this will affect their plans for Goro. Earlier in in 2018 they had said that they would idle the plant if they could not find a partner due to high cash costs and a 500 million dollar expenditure needed for future tailings requirements.
Later in the year (december) they had not found a partner but decided to not idle the plant and fully invest the 500 mil themselves as they were confident in the fundementals of nickel pricing moving forward. Obviously, Vale will not have the same amount of discressionary funds availible............perhaps they idle Goro until they do. As it stands I believe the project is cash flow negative at these prices.