Ravensthorpe Nickel To Close?

As I understand it the project is dependent on high nickel prices. Its continuation depends not on what the price is today (far too low), but the projection of the future price relative to costs of continuing (may be necessary to write off a lot of money already expended though). So continuing with the project will depend on someone's guess as to the future price of nickel plus how big a proportion of the expenditure has already been incurred. Unlike Rio, the company is not in financial difficulties, so an actual shortage of funds to continue is unlikely - just has to decide that a short term loss is acceptable in the expectation of long term return to profitability.

There has also been speculation about technical problems, but I would discount these.

John

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Originally Posted by JDNSW

As I understand it the project is dependent on high nickel prices. Its continuation depends not on what the price is today (far too low), but the projection of the future price relative to costs of continuing (may be necessary to write off a lot of money already expended though). So continuing with the project will depend on someone's guess as to the future price of nickel plus how big a proportion of the expenditure has already been incurred. Unlike Rio, the company is not in financial difficulties, so an actual shortage of funds to continue is unlikely - just has to decide that a short term loss is acceptable in the expectation of long term return to profitability.

There has also been speculation about technical problems, but I would discount these.

John

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John,
Technical problems just about solved. Have been running at 85% nameplate so all good there. Damn money lenders in the US causing this depression. Will know more tommorow I suppose.:(

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Originally Posted by Brian Hjelm

Great place, Gladstone. Close to the Barrier Reef and the Swains. Tannum Sands, Agnes Water, 1770, estuary, reef, and beach fishing, plenty of 4WD country all around, mud crabs in plague numbers and beaches all the way north. It is not cold, wet, and windy in winter either.

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One place I would be prepared to move to.;)

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Originally Posted by Jamo

Been hanging around the girls toilets again, Craig?;)

Ford Murray claimed on 15 Jan that there were no plans to cut staff. Hopefully that's true.

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Jamo,
Certainly hope that is true, but have been through this 4 timjes with WMC and up until the day of retrenchments they did deny it too. Survived these and hopefully will get through this hype too.
Sick of the media drumming up stories like this on slow days. The ABCare the worst along with The Australian.:mad:

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Originally Posted by LandyAndy

Goodluck with the BHP announcement tommorow Craig.
I dont want you to leave Esperance either:cool::cool::cool::cool:
Hoping talk is only scuttlebug,they have been hammering it on the news.
GOODLUCK
Andrew

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It is in fact just the quarterly review. No news on site, so hopefully all is good. Just found a good spot near Mungy beach to take you fishing too.:eek:

just spoke to jude, she mention a safety stop (meeting) tomorrow where hopefully they will know more

she gave me a run down on the cubicle as well.........:cool:

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Originally Posted by weeds

just spoke to jude, she mention a safety stop (meeting) tomorrow where hopefully they will know more

she gave me a run down on the cubicle as well.........:cool:

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Yeah, spoke to my back to back yesterday immediatelly after hearing on the news and got the same info. That is all they know, Apparentlly some safety issues that need everyone to stop work and shut down the plant to be addressed.:eek:
Will just have to wait and see. Funny they have planned a safety shut on the same day though.:o

Just thought I'd jump the gun and say it's closing,so is the Perth offices and 300 jobs going at Mt Keith. Pat

Yep,
We are screwed.
Still have not received official notice yet, only informal from my back to back. Not sure what is happening and if options are available, but looks like our stay in Esperance is over.
Nice to see BHP are no better than WMC used to be and lie point blank up until the last minute.
Will have to see what happens today, but internet access will be one of the first things to go.
:(:mad::(:mad:

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Originally Posted by CraigE

Yep,
We are screwed.
Still have not received official notice yet, only informal from my back to back. Not sure what is happening and if options are available, but looks like our stay in Esperance is over.
Nice to see BHP are no better than WMC used to be and lie point blank up until the last minute.
Will have to see what happens today, but internet access will be one of the first things to go.
:(:mad::(:mad:

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Thats not good craig I hope things work out for you....