Nicola Mining Inc HUSIF

The case for Nicola Mining

[Henrich428]

First of all, this company has a good deal of debt that bears a risk of wiping it out if PM prices don't continue at least to stay relatively the same as they are now. So bear in that mind from the outset.

Here are some reasons why a person might buy Nicola Mining:

They have their own fully-operational mill. It is a highly strategic asset that cost roughly what the present market cap of the entire company is ($32 million). So when you buy Nicola Mining, you are really only paying for the mill and nothing else. It is the only mill in British Columbia which is permitted to process feedstock from anywhere in the province. It is the mill that Blue Lagoon Resources must make use of, along with hundreds of other local gold deposits should they ever wish to become mines. You can see them all mapped out on the Investor's Presentation, p. 7.

https://nicolamining.com/wp-content/uploads/2021/07/NICOLA-MINING-INC-Corporate-Presentation-July-14-2021.pdf

According to mining analyst Peter Epstein, it would be nearly impossible to get a new mill permitted in B. C. in under five years, if at all.

Nicola have a silver property called Treasure Mountain. It does not have a large proven reserve, but the grade is extraordinarily high. The "total vein inferred resource above level 1" for example is 39 oz/t. The predecessor company, Huldra Silver, planned to produce 2 million silver ounces per annum before the silver crash wiped them out, so they must have had a good deal of confidence in the property.

Nicola also have the New Craigmont copper mine, the highest-grade copper mine in North American history. It only closed after 1982 because of low copper prices ($0.60/pound), not mine depletion. It produced 890 million pounds of copper in total, which is more than the entire resource of Blue Lagoon's Big Onion copper deposit.

Both Treasure Mountain and New Craigmont are fully permitted for mining. This is very rare in junior mining companies and often the most nightmarish part of the process.

Nicola also have a 75% economic interest in Dominian Creek, a very high-grade gold property.

With regard to the debt: the debt-problems mostly came from previous management, when the company was called Huldra Silver. The current CEO, Peter Espig, who was brought in afterwards, specializes in turning companies around.

I account for the currently low market cap of NIM in two ways, first because of the debt-problem, secondly because the company is terrible at marketing. But that gives a person an excellent opportunity to buy at rock-bottom prices. Three company-makers in one company, and right now you only pay the price for the mill. If you believe that the Canadian dollar will go into hyperinflation then the debts would also get wiped out.

Peter Epstein has written an excellent article on Nicola Mining here:

https://epsteinresearch.com/2020/09/23/nicola-mining-adds-high-grade-au-property-to-cu-ag-projects-modern-permitted-mill-tailings-facility/

[pogohere]

"First of all, this company has a good deal of debt that bears a risk of wiping it out if PM prices don't continue at least to stay relatively the same as they are now. So bear in that mind from the outset." What are the details on the current debt position of NIM ?  Can you supply links to company data on the details? TIA

[sonofcroy]

just check out there balance sheet on sedar

[Henrich428]

I'd point out however that Peter Epstein says Blue Lagoon can cash-flow $12 million/annum soon. Nicola will be taking a toll from that since BLLG have to use their mill.

[Henrich428]

Current liabilities are $800,000, total are $11 million I believe. So NIM is no lost cause if they and BLLG keep up progress in the milling-arrangement. Remember: BLLG need NIM.

[Henrich428]

GoldVentures has just started pumping Blue Lagoon Resources. Bodes very well for the future of Nicola and must be why the share price moved yesterday.