Lunnon metals 20 km south of BHP concentrator 79 k tonnes NiSo there 's a nickel co. called Lunnon Metals just 20km south of Beta Hunt which has a nickel resource of about 79,000 tonnes @ 3.1 % nickel..Their market cap is about 90-100 million $ cdn...They are not in production, don't know when or how much it will cost them in Capex to go into production but I'm sure it's going to cost many millions to do so.. They are a new company that just got listed on the ASX about 18 months ago ..Their resource was 30,000 tonnes nickel to begin with and they were able to increase it to 79k this month...
I see similarities between it and Krr's nickel operations but Krr has two main advantages : 1) Beta Hunt is only 4-5 kms away from BHP's mill and 2) Because of Beta Hunt's already built and paid for massive underground infrastructure (400 kms of tunnels, which would cost close to 1 billion $$$ to build at today's inflated costs) , it' s only going to cost Krr 5 million $ to start mining initially 2000 tonnes nickel/yr..
Would love to see Krr attain a nickel resource of 79 k tonnes of nickel in the 3% grade ballpark...
Krr is going to come out with a new nickel resource estimate sometime in 2023...Right now, they have about 33,000 tonnes of nickel but with several months of new drilling having taken place in 2022, we should see a big jump in the overall nickel resource..
Would be fantastic if Krr could prove out at least 100,000 tonnes of Ni @ 3.0% nickel in the next 2 -3 years or sooner...
If Lunnon has a market cap of close to 100 million, I think Krr's nickel division should have at least a 70 million $ matket cap right now , that's if it was a stand-alone company...If krr had a 79 k tonne resource right now at 3% grade, it would have a market cap of probably 150 million- 200 million$ cdn because of very low capex , accelerated production and potentially higher profitability compared to a Lunnon type competitor.. Higher profitability = premium price compared to other nickel producers.. Krr will go into sizeable nickel production much sooner than other small nickel companies...
Anyway, just wanted to inform everyone here what kind of valuation the market might be giving to Krr for it's nickel operations based on what other similar sized nickel companies are being priced in terms of market cap at the moment ..
Don't forget that Krr's nickel production is going to be bumped up to 2000 tonnes/year within 12 months of now...I expect the market to start taking into consideration the daily nickel price when valueing the share price of Krr especially as we move closer to the end of 2023...
2000 tonnes produced @ 20,000$ gross profit is 40 million $US added to Krr's balance sheet...The market is not going to ignore that for long..
....