RE:Interesting interviewThanks Rm, it's amazing how the amateur investors on here who rant about the low grade miss this basic concept of what district scale is all about.
High grade mines get shut down and die for a decade or more when nickel prices decline. While widely distributed LOW COST open pit mines keep on churning out huge profits year after year for decades. Toss in carbon credits and it's an even more massive windfall.
Low grade copper deposits have some of the longest producing and most profitable mines in the world.
Rm90090 wrote: Interesting interview for those that have CRUX. Mark was giving his regular Nickel discussion when he was asked (again) about how low grade can be economic. He said to be careful in your thinking because people make the mistake of thinking that high grade means high margins. The size and scale REALLY matters.
There hasn't been a large scale high grade deposit since Voiseys Bay. At the end of the day the only thing that matters is the cash flow in the bottom line. He said to check out the company Mincor that has multiple high grade nickel deposits that are just sitting there out of operation. They are next to infrastructure but the size isn't big enough to actually mine it.
CNC is clearly chasing these low grade VERY high scale deposits because they are the economic nickel game in town. Good interview