answering a question on our royalty portfolioHi everyone, I am responding to a few questions that were emailed to me. First response below:
Question: Dumont Nickel Project: Road Map and Timeline. There is another asset that is not at all the focus of the analysts: Dumont Nickel project. The reason is simple: Dumont is privately held by Waterton/Magneto Investments. Listed stocks of companies with nickel projects have risen significantly for some time. Canada Nickel, too, with CEO Mark Selby. Mark Selby was the CEO of Royal Nickel; Royal Nickel developed Dumont before. Nickel 28 has an NSR of 1.75%. From the start of production, this would mean approx. 10mUSD per year free casflow for nickel 28. Is it possible, that you can give a brief overview of the timeline of the road map from the Dumont Nickel Project - and above all, by when can a start of production be expected?
Answer: On Dumont, we believe that Waterton is actively seeking a partner or buyer for Dumont while it undertakes optimization on their technical studies. At today’s nickel price, this is a project that should and needs to be built with the global energy transition underway, including at both a vehicle and grid level. The construction timeline that we are aware of is 18-24 months. And you can expect any buyer/investor to go through a 12 month final engineering study before construction begins. So we believe operations could begin in approx. 2.5 to 3 years from the time a buyer/investor comes in and finances the project. Don’t forget about our Turnagin royalty. While further from production, it too provides leverage to nickel and cobalt.