New reports available for Victory NickelOne the CSE Victory nickel has reported MD and A. Dated April 17,2018
A few things of interest:
"Demand growth has led to recent cobalt pricing in excess of
$43.00/lb, dramatically higher than the $27.73/lb price used
in the Minago FS, and BMO Capital Markets states: “a doubling of the cobalt spot price over the coming couple of years is not out of the question.” Atthe current price $42.00/lb, the Minago FS indicates that the Minago mine produces approximately $188,000,000 of cobal
t in concentrate over the approximate eight-year mine life making it a significant by-product of nickel production"
"As at the date of this MD&A, the IRR is 13.34% (with no adjustments made to the frac sand market), based on current metal prices and the exchange rate, with the price per pound of nickel at $6.41. The IRR reflected in the Minago FS is 22.4% and the breakeven price of nickel is $3.80 per pound."
Currrent spot price for nickel is $6.94 us
Currently in default of debt but restructured until July 2019. If Victory nickel gets frac sand orders and financing for purchase of additional frac sand production yearly revenue could exceed 130 million. (620 000 tons currently and 1 million possible with financing at $85 US per ton.) Will they sell the sand production they currently have? Will they get financing for expansion?
Howlong