Mikey 2
@Mikeymike426 @Optimus.Time
well articulated post :) I would love to offer some feedback.
Lets talk major’s for a minute. Majors want long life operations like this if the numbers work and many are slowly setting themselves up. They aren’t blind to all the battery plants, auto manufacturers committing to EV’s and everything green and in between. Not a chance! But you ask why are they not stepping up? Let’s say that differently, why is Mark not making a deal?
You see, I don’t think that there is any lack of interest. Canadian and American Federal Governments have been at the table and Mark’s been all over the world in meetings. Like you have no idea how many meetings! so everyone is watching! My suspicion is that they are waiting to see the feasibility study to truly understand the full scope.
Here is where I ask you, is it by design? Imo, Mark knows that since the downturn in the market he sits with a slight disadvantage for negotiating. Nobody likes uncertainty, so why make a deal now. Instead look at options to put it into production. They could sell royalties, they could sign a feedstock agreement, they could JV and use a number of creative ways to raise capital. Don’t underestimate government funding coming in to play here. It would make for a wise investment knowing CNC has a 40 year mine life +++.
A on that note, Capex can be broken into 3 parts as it was for Dumont and a start up won’t be as much as you might think. Plus grants can offset some of the costs to build. Look at the money getting thrown at Electra in Cobalt. There is a huge market and appetite to so this project advance. Former mayor of Timmins is the minister of mines, And he loves this project!
So my short answer is they are waiting for the Feasibility study but my gut tells me Mark is a good poker player.
Once the feasibility study is in hand everything changes. I don’t think many understand the overall improvements that have come into play since the PEA. That alone will be impressive but now throw in that they can capture 710,000 tons of CO2 per year and that’s icing on the cake. I can assure you that with the world crying for clean nickel, CNC is on everyone’s radar because Mark Selby has made it a point to get that kind of attention.