Skip to content

Arrowhead published an Equity Research Report on Alliance Nickel Limited
January 9, 2023

Follow

GME Resources (ASX:GME) Research Initiation

Highlights:

  • GME Resources is an Australia based pre-development mining company with nickel, cobalt, and gold assets. The company’s flagship project, the NiWest Project contains one of the highest-grade undeveloped nickel laterite resources in Australia and is located adjacent to Murrin Murrin, an established nickel producing region in Western Australia
  • The NiWest Project covers seven deposits over a 50-kilometer (km) radius, hosting 85.2 million tons (mt) of nickel and cobalt resources at 1.03% nickel and 0.065% cobalt, with 75% of the total resources falling within the Measured and Indicated JORC categories
  • The company has already released two pre-feasibility studies (in August 2018 and July 2022), which estimate a life-of-mine of ~20 years and a production life of ~27 years. It is now conducting a definitive feasibility study (till Q4 2023) which will be followed by the construction of the project infrastructure, before it commences production in H2 2025 (nameplate production to be achieved in 2026)
  • As per the base case of the PFS, the project would generate a revenue of AUD 19.0 bn and an IRR of 19.9% over the life of the project
  • The high-grade resources of the project will enable GME Resources to employ low cost Heap Leaching and Direct Solvent Extraction processes to produce nickel sulfate hexahydrate and cobalt sulfate heptahydrate to eliminate a majority of the 10-40% processing cost premium and directly serve the growing EV batteries market
  • GME Resources has already signed a non-binding Memorandum of Understanding (MoU) with Stellantis, one of the leading EV makers with a global market share of 6%, to supply nickel and cobalt sulfates from its future production
  • It has begun discussions with the Australian Federal Government’s Critical Minerals Fund and other potential financiers to provide debt and equity financing. In addition to traditional sources of debt and equity, GME Resources will explore other arrangements, including farm-in agreements, joint ventures and strategic partnerships with offtake partners
About Us | Please read our Privacy Policy, Cookie Policy, Disclaimer and Terms and Conditions. By accessing or using the Service you agree to be bound by these Terms. © 2024 Arrowhed Business and Investment Decisions, LLC.