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nIcKeL PReVIeW

Blackstone

bunkers down

lackstone Minerals Ltd might be in keep the faith while all study work is com-
Bthe dreaded “orphan period” for junior pleted.
companies, but managing director Scott “Unfortunately, we’re in what they call
Williamson believes the grand prize will the orphan period where you’re in full-on
more than compensate for the long wait. study mode,” Williamson told Paydirt.
Since pouncing on the Ta Khoa nickel “A lot of retail investors don’t like this pe-
project more than three years ago, Black- riod because it’s not as exciting, but what
stone has delivered consistent news flow you find in this transition period is the in-
to investors concerning its ambitious plans stitutional investors will start to buy in be-
to develop a vertically integrated busi- cause they can see everything becoming
ness in northern Vietnam and to become more de-risked. We’re in that sort of period operating cash flow of $US533 million,
a leading producer of NCM-811 precursor now where institutions are very interested life-of-mine AISC of $US12,253/t, post-
products. because they can see we’re getting quite tax NPV of nearly $US2 billion and IRR
A key milestone was achieved in late close to cash flow.” of 47%. The study assumed an average
February when Blackstone unveiled PFS- The PFS estimated pre-production capi- nickel price of $US20,000/t and NCM-811
level numbers for an 8 mtpa integrated op- tal of $US854 million for the integrated op- precursor price of $US17,670/t.
eration at Ta Khoa which assumes circa eration at Ta Khoa, alongside a maximum Aside from the DFS announcements,
50% of the concentrate feed coming from cash drawdown of $US771 million incurred the next major milestone on Williamson’s
the company’s own resources in Vietnam in 2025 when the company is seeking to agenda is the unveiling of strategic part-
and the balance provided by third parties. deliver first concentrate. Payback will fol- ners for the project.
Blackstone has since bunkered down on low within 22 months of that production “We think this will be the key catalyst to
DFS activities for both the upstream and milestone. re-rate the stock,” he said.
downstream aspects of its strategy and Some of the other key financials re- “One of the key problems we’re seeing
Williamson is pleading with investors to vealed in the PFS include average annual with investors is they look at our capital

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