We're a high cost producer. If we were open pit mining a large resource, our average cost would be way lower. Unfortunately, we're tapping in to small reserves with a high cost of extraction... we need $10+ nickel to make the formula work. With up-front capital costs, cost of mining/refining and G&A costs, we'll be lucky to get our cost to produce nickel down to $7-8/lb.

Nickel closed around $8.30 today. $9 nickel was already getting in to the danger zone.

At $8.25 nickel, total revenue drops from 14 million lbs x $12.50 = $175mm to 14 million lbs x $8.25 = $115.5mm. That's $59.5 million less.

McWatter's feasibility study cited cumulative cash flow of $53.9 million for the project at $12.50 nickel.

Do the rest of the math.