CNC: The Next Voisey’s Bay, With A Net Zero Extraction Tech On August 11th, CNC announced a $1.5 million PP to “aggressively pursue additional exploration targets once our in-fill drilling for the current resource is completed this month." The market can anticipate a metallurgical report, additional drill holes, and a resource estimate in the near future.
On July 15, Mark Selby told Northern Ontario Business that
this could become one of the largest nickel sulphide mines in the world. He followed that up by - yet once again - buying shares in the open market at $2.42. Others may agree. The flow-through shares were priced at $2.60. CNC closed the week at $1.80, as the exercising of warrants continues.
Selby also stated in the interview, that finding deep nickel sulphide deposits are exceedingly rare, and mentioned Voisey's Bay.
Many will remember that in March 1996, Inco announced a takeover bid of $4.5B ($174 per share) to buy Diamond Fields, Voisey’s Bay. Fewer may recall that in April 1995, Teck purchased 3 million shares of Diamond Fields worth $108 million ($36 per share). Teck walked away with $522 million in 11 months.
Teck caused a lot of deal tension that led to the eventual bidding war. The question is: Who will start the bidding war on CNC, and who will win in the end? Will Tesla or an ESG fund start the process?
See Link Below: Three Potential Buyers of Canada Nickel (Glencore, Anglo and BHP)
On Thursday CNC tweeted:
"If [EV manufacturers] want #nickel, they need to provide guidance on how much they're going to need in the 2025 to 2030 time period... To help the investment community be ready to write a check $ to mining companies to build these projects."
And:
"The 2017 boom in EV metals was merely the entree. What is coming this decade is so much bigger. #Nickel sulphate #battery demand is set to lead the pack with a staggering 14x increase in demand from 2019 to 2030."
The ESG Parabolic Trajectory of 2020
Analysts predict that by year end, $45 trillion in assets will comply with sustainable practices (including ESG standards). That’s almost equal to the total GDP’s of the US, China, Japan and Germany.
Recent ESG Related News:
Global mining and metals CEOs increasingly recognize the advantages of a strong ESG performance.
This includes investors, for whom ESG performance is becoming a leading guidepost for investment decisions.
Miners are well equipped to access alternative sources of capital like green and ESG bonds through their role in low carbon technology.
Global ESG assets hit US$1.06 trillion as of June 30, up 23% from the previous quarter.
Inflows into global funds were up 72% in the second quarter of 2020 to US$71.1 billion.
The total number of ESG funds now sits above 3,400
Canadian miners have excellent track records around holding management accountable for health and safety performance, but it’s time to apply this across the ESG spectrum.
From CBC:
“On paper, Canada Nickel's facility would be an ideal supplier for Tesla because it is closer to the company's production chain in California and to Nevada, where it makes batteries — which is perhaps why Musk welcomed news of the project on his Twitter feed recently.”
If CNC hits on the other (80%) targets it may well be considered the The Saudi Arabia of Battery Grade Nickel with Sound Ethical Extraction Technology
They appear to be in good hands with Ausenco:
Minerals & Metals Consulting
Environment & Sustainability
“Elon, let’s talk.”