RE:RE:Today’s conf callI can't answer for him, but i can say that it's pretty obvious that all the nickel plays that were discussed in the call are not in the money at current nickel prices. So they have high valuation but can't even think of moving ahead. Exploration cost are sunk cost... we need at least a 10$ USD price to start to think we could generate value out of the property. It would require proably high ten's for the current proven resource to stand alone and be valuable.
The point is, that our peers are having completely disconnected valuation for their properties/project in the current price environnement. I don't think we will catch up to them in the current price environnement. If prices never go up, think of what happenned to RRS with Langmuir 10 years ago. That will happend to them. Nickel was 50 000$ / ton. Rogue valuation spiked based on real good discovery at 1% and those prices. Look at RRS chart. That's 25$ per share at current prices.Nickel went the toilet to 10 000$ /ton.
RRS have a core business that can sustain its current price environnement and for a foreseable future. If nickel prices are shown to maintain well above 10$ for a decade +, then we will have something to play with. Just my 2 cents. Nickel prices not forecasted to be above 10$ in the next 2 years. Still a surplus market with as far as we can see. EV demand is still not important in the overall demand that comes mainly from stainless steel.
ARIMA11 wrote: Great call/ questions. However, its difficult to understand RRS's perspective on Nickel.
RRS is not likely to get higher than zero value if zero is done to derisk the Nickel asset further.
No firm exploration plan for 2021? Dissapointing... Potential opportunity cost? Who knows.
RRS valuation is tied to perception of future value and not necessirily income. The idea of growing the stone business make sense but it may not lead to higher share price necessirly.
If the Nickel potential there, RRS needs to show the market. Are there current venture players in production making money? No? Then why is their valuation climbing? Nickel prices?
There also a time factor. Assume that it takes a fair bit of time to de-risk an asset to production.
Anyways, let see how RRS fare with increasing the capacity with Stone. Totally understand the path (sound business sense) but it won't necessirily be reflected in the stock price. We'll see.