Research Capital $3.25 target "As we have previously noted, the Reid project is shaping up to be a very large deposit,
sharing many similarities with Crawford. We believe it has the potential to be larger than
Crawford and reenforces our view that CNC is defining a nickel camp that may have
resources to sustain many, many decades of nickel, iron, chrome and cobalt production
in the future. We think it is these characteristics that recently attracted Anglo American
(“Anglo”, LSE-AAL, not covered, market capitalization of US$45 billion) as a strategic
9.9% equity holder of CNC.
Maintaining Recommendation and Target
Overall, we think the metallurgical results from Reid are very promising. While the testing
was done on a high-grade sample, we think that the overall results will be more-or-less in
line with Crawford once a number of mineralization types have been tested. We reiterate
our SPECULATIVE BUY rating and target price to $3.25/sh."