That was a great article jeannie, I had none seen it before. I like this quote:
North American chromite demand is currently at 1.2 million tons per annum, while China’s demand is 12.0 Mtpa, and demand is expected to rise steadily in direct response to the urbanization of Asia, India and other emerging economies.
The current chromite totals 18M tons in all categories and should come in around 36M tons if Noront manages to double the resource as they said they would. The last set of assays certainly supports this possibility. Does anyone have a value for chromite. I seem to remember $400 per ton but forget if this is raw, processed or ferrochrome...However, I did redo my old excel spread sheet with 36M tons of chromite at $400 per ton. If I am way off, please excuse me and would love to get more accurate info. As for Eagle's nest, all numbers reflect today's closing prices so should be pretty accurate. However, I did use the recovery of nickel and extrapolated that to all metals in Eagle's nest.
Tonnes Nickel Copper Pt Pd Au All metals Reserve category lbs lbs ounces ounces ounces 11,131 36.96 19.14 0.89 3.09 0.18 Metal value per tonne $ 311.41 $ 67.76 $ 47.25 $ 65.28 $ 10.37 $ 502.06 Total reserve value $ 5,588,413.64 Resource category 8,966 24.2 25.08 1.16 3.49 0.3 Metal values per tonne $ 203.90 $ 88.82 $ 61.58 $ 73.73 $ 17.29 $ 445.31 $ 3,992,648.97 Total value in reserve and resource $ 9,581,062.62 Assuming recovery of 86.4% of all metals value would be $ 8,278,038.10 Chromite 36M tonnes $400 per tonne $ 14,400,000,000.00
Sorry if chart does not come out as intended. However, it clearly demonstrates that Eagles nest is worth 8.278 Billion dollars with the recovery of 86.4% of the ore and that the chromite could be worth 14 Billion dollars. With Baosteel being the second largest steel maker and demand expected to increase in China from 12Mtpa, there should be plenty of demand for our chromite. So if Chromite numbers are correct (I could be way, way off here on the value per ton) we are looking at a 20 Billion dollar value in the ground with a MC under 200M dollars. We are basically trading at 1% In Situe value on a very good grade project. It is scary to add to positions in Noront based on past trading pattern and the fact that we are overbought on the daily and weekly charts but fundamentals support much higher prices.
Interesting times are here again!
Glorieux
