highlights BFSHIGHLIGHTS BFS :
Highlights of the DFS Base Case (all figures in Canadian dollars, except as indicated) are:
-- Undiscounted cash flow (pre-tax) of CAN$917.7 million.-- Net present value ("NPV"), using a discount rate of 8%, of CAN$293.8 million.-- Internal rate of return ("IRR") of 17.66%.-- Breakeven price of nickel is US$5.06.-- Payback period of four years from start of nickel production.-- Measured and Indicated resource of Sulphidic Nickel ("Ni(S)") of 44.1 million tonnes grading 0.43% nickel for open pit only.-- Total ore tonnes mined is 57.1% of Measured and Indicated Ni(S) resource.-- Proven and Probable reserve of Ni(S) of 25.2 million tonnes grading 0.43% nickel for open pit only.-- Strip ratio of 11.7:1 to mine the nickel including frac sand as overburden.-- Production of the world's highest grade nickel concentrate at 22.3% Ni with 10.4% magnesium oxide ("MgO").-- Seven-year nickel production life (open pit only).-- Capital cost forecast of $596 million, including a contingency of $50 million.-- Average annual ore production of 3.6 million tonnes.-- Average annual nickel production in concentrate of approximately 11,000 tonnes.-- Cash cost per pound of nickel before by-product credits: $6.95 (US$6.34).-- Metal by-product credits of
.79 (US
.72) per pound of nickel.-- Frac sand by-product value of $4.04 (US$3.68) per pound of nickel.-- Cash costs per pound of nickel, net of credits, of $2.12 (US$1.94).-- Average annual frac sand sales revenue, net of freight, of $70 million.-- Processing cost per tonne of frac sand of $6.50.