Will the presence of 1.69% chromium in the magnetic concentrate affect the marketability or pricing of the nickel product?

The 1.69 % chromium in the magnetic concentrate is relatively modest and sits well within the typical impurity range for high‑grade nickel ore (most nickel concentrates tolerate up to 2 % Cr without major processing penalties). As a result, the nickel itself remains market‑able to the same downstream customers that currently source First Atlantic’s product, and the headline 1.27 % Ni and 81 % recovery rate remain the primary value drivers. However, the presence of chromium does introduce a modest processing cost—most smelters will incur a small extra charge for additional slag handling or a modest Cr‑recovery circuit—but this cost is generally passed through as a modest discount (typically 5‑10 % of the nickel price) rather than a wholesale rejection of the product.

From a trading perspective the key point is that the chromium level is not high enough to jeopardise marketability, but it does create a small, predictable price differential. In the short‑term, the market will likely price this material slightly below “clean” nickel (e.g., 1‑2 % discount to the LME nickel price) until smelter‑level pricing data confirm the exact penalty. Traders should therefore monitor the spread between First Atlantic’s nickel‑in‑concentrate price and the benchmark LME price, watch any updates on the Cr‑recovery economics from the company's DTR (direct‑to‑recovery) processing data, and be prepared to adjust bids by a few cents per pound. In practice, buying the concentrate at a modest discount could be a “value‑add” if the company’s recovery rates remain high (≥80 %) and the overall cost‑per‑pound of nickel stays competitive in the EV‑driven demand environment.