Value Microcaps Junior Miners

[curlews]

BMC.v margins -Nuts, you are right, of course, that it does not matter whether the 58% applies to the price or the amount of nickel - the result in payment to BMC is the same.

I did not realize how great a smelter charge they are paying to BHP, so I had to dig into the filings. "A Smelter Fee is applied at a fixed rate of 35% of recovered nickel metal." In addition, there are fixed recoveries set dependent on the nickel grade of the ore, and this will be set at 90% for ore grades of 2.5-3.0%. That could climb to 92% if the Winner ore brings the average up to over 3.0%. The value of 65% of 90% recovery gives the 58.5% value that you and cl have been using.

The 35% smelter fee seems like a lot, but it comes down to a question of what the mining costs alone are per pound of nickel. So where did the 6.00 per pound number come from? Do we have a good estimate for what mining costs will be as the mines ramp up over the next year?