How to fund a nickel mine when you’re a small company. I rewatched a Mark Selby interview from 2 months ago, and he addressed the question of how to fund the build out of a nickel mine being a small cap company. He said it is very doable now compared to 5 years ago because the nickel sentiment/demand is completely different.
- It is very easy to obtain financing (debt) for 60% of the costs. So this project has a build out cost of $1.2B. The financing would be $700M. Leaving $500M needed.
- The car companies are keen to lock in their share of the nickel output. CNC could presell nickel output at Approx $100M each to EV companies. 4 agreements would leave $100M left.
- Lastly, the PEA didn’t account for the PGMs because it assumed nickel was being used in the stainless steel industry only. Counting the PGMs gives the project the remaining $100M it needs.
- Mark hasn’t mentioned major that may want to purchase a piece of the project. Voiseys Bay sold off parts of the project before selling the whole thing. The pieces were sold for hundreds of millions of dollars.
- Mark states that if he can’t get the financing he needs, he feels that he can auction off the project at that point. He isn’t interested in raising the money by diluting the shares. He is a main stockholder here.
Here is the link: https://youtu.be/9yC03XZYo74