FPX Nickel Corp. V.FPX

Better Price Than The Private Placement

[NickelShill]

Already have an irresponsibly large position here, yet can't help but top up at these prices.

Management dumping millions of their own capital into this company is a strong vote of confidence.

[Nickelodeon]

I don't think is is possible to go wrong buying FPX.  If there are any new mine permits issued at all, FPX will get one.  Probably top of the list from an environmental standpoint.  Based on NPV FPX is now worth $12/share.  $6 if they can keep half in JV negotiations. We might double this valuation with Vann, and then double it again with iron ore by-product.  How

[rockport1]

Nickelodeon, I agree FPX is a very solid buy at this point.  I picked up a bunch in this dip.   Does anyone have any insight on the strategic plan over the next year?  I sent the company an email, but didn't receive a response.  I'm glad to see them drill Van, but would like to see more detailed plans, including next steps with Decar. I would also like to know if

[Nickelodeon]

The road map can be seen in the Gantt chart presented in the full PEA available on SEDAR.  I doubt they will stray very far from this.  We will get some CO2 sequestration info on Nov 3, then again in December and Q1 2021. As I pointed out, they could actually crank out a second PEA for a stand alone iron ore project.  I suspect the only thing that held them back was a desire to

[NickelShill]

Interesting that you think the iron ore portion could be worth as much as the nickel that the company is named after... If this is the case, why did Cliffs sell its intetest in Baptiste as part of their mass divesting of non-core assets? Any insight as to what a break-even iron price might be? I see it had recently crept up to ~125 per tonne...

[Nickelodeon]

First of all, Cliffs sold because of a forced liquidation due to looming bankruptcy risk.  I have no doubt that as an iron ore company Cliff's knew exactly what the magnetite potential might be. My spreadsheet for DCF NPV has an option for iron ore.  The difficult input is the price to use. This depends upon the product which could take one of three forms:  Run of mill

[Nickelodeon]

I had a look and pig iron is selling for $450/tonne today.  At that price the before tax cashflow for the HBI by-product would current clock in at about $590M per year.  By comparison, at $7.75/lb the primary nickel product throws about $400M per year.  Double all this again if Van works out as expected.  48 cents per share today? Really?

[rockport1]

Nickelodeon, appreciate all the great work you are doing here. I'm not a base metals guy (more precious metals) so a lot of the technical detail you talk about is over my pay grade. I am curious why you think the iron ore by-product would be an easy stand-alone PEA. From my reading of the NI 43-101, the iron-ore by product would be a massive change to development. I believe the amount of

[Nickelodeon]

There are several reasons I want to segregate nickel and iron into separate PEAs.  First combining the two would cause confusion about capital costs.  Second, price forecast inputs to separate NPVs are easier to understand.  Think for a moment about economics of HPAL in Indonesia, for a primary nickel product, recently significantly affected downwards due to a sharp decline in by