Sirius hopeful of nickel price turnaround
Sirius Resources is hopeful of a turnaround in the lowly nickel price by the time it comes into production in 2017.
The company admitted in the presentation it delivered at its annual general meeting today that it was a bad time to be a nickel producer with prices around $US6.50 a pound.
However it said it was hopeful of a nickel price of $US8-12 a pound in 2017 backed by continued growth in demand, decreasing stockpiles and reduced supply because of the closure of unprofitable mines.
Sirius said the definitive feasibility study for its Nova-Bollinger project was on track for completion in the middle of next year.
A scoping study has defined Nova-Bollinger as a financially robust, technically low risk project with an initial 10-year minelife, delivering net cashflow of $2.8 billion.
The project is expected to produce 28,000 tonnes of nickel a year, 11,000tpa copper and 940tpa cobalt over its initial 10-year life.
Sirius said it was continuing discussions with financing providers and offtake customers.
Sirius shares were up two cents to $2.48 at 12.50pm.
