RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:New investor in GIGABatterymetals wrote: Yes I saw this as well, we follow the same twitter people! There is a great community on twitter of battery, EV, nickel enthusiasts, battery PHD students, analysts etc who are able to shed an amazing amount of light on the issues. All in all they lead me to be quite confident in the long run nickel story, especially in terms of demand.
I would like to ask people about grades and HPAL competition though (ie, supply). I see there are HPAL operations in Asia producing nickel > 1%, whereas our grades at Turnagain are circa 0.23% or so. We have a cost advantage especially in terms it seems of CAPEX, hoever how does this fall out overall when it comes to higher grades from HPAL. How much of a threat is HPAL production if and when the much predicted increase in Nickel demand comes about, or put in another way, will HPAL be able to meet that demand at a total overall cost at or better than Giga/Dumont etc?
The short answer is that I very much doubt it, especially if HPAL is done in a responsible way.
The longer answer is that Turnagain is very financially competitive with HPAL, both CAPEX and OPEX-wise. And the kicker at least from a western world standpoint is that HPAL has more risk of cost overruns AND is more environmentally hazardous than regular sulphide projects. I am pretty sure that most new HPAL projects are not economic to build at these nickel/cobalt prices.
As for grade, their ore grade may be low, but Giga's concentrate grades are among the world's highest. Giga's metallurgy is unusually good and we now know recoveries are improving, which could mean lower breakeven and greatly improved project NPV. Also, only a handful of assets can be among the world's largest, and this is one of them. That in itself will create a lot of attention for the company going forward.
China and India, Pakistan, Indonesia etc are going to need all the nickel they can get. I also think that for European or American companies, sustainability is very important and here Turnagain could really be an attractive alternative to bring into their supply chains. If Trump (climate change denier) is replaced in November, I predict a significant bump in interest for assets like Turnagain.