FPX Nickel Corp. V.FPX

Alternate Symbol(s): FPOCF

Metals & Mining Industrial Metals & Minerals

FPX Nickel Corp. is a Canada-based junior nickel mining company. The Company is focused on the exploration and development of the Decar Nickel District, located in central British Columbia, and other occurrences of the same style of naturally occurring nickel-iron alloy mineralization known as awaruite. It holds a 100% interest in five nickel properties, four of which are located in British Columbia (Decar, Wale, Orca, Klow), and one located in the Yukon Territory (Mich). The Company’s primary project is the Baptiste deposit (Baptiste or the Project) located within its flagship Decar Nickel District (Decar). The Mich property is located approximately 55 kilometers (kms) southeast of Whitehorse in the southern Yukon Territory. The Orca property is located approximately 35 kms east of Dease Lake and nine km from the Eagle target on the adjoining to Wale property. Klow Property is located approximately 120 kms northwest of Fort St. James and 55 kms north of the Decar Nickel District.

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FPX Nickel Corp.

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Comment by AlternativeViewon Jun 10, 2018 9:32pm

56 Views

Post# 28152510

RE:Cash Costs Will Be About $6,000 USD Per Tonne

Another number given was production 40,000 to 45,000 tonnes per year, or 110K to 123K TPD. But it would not surprise me if more recent modelling runs at a higher rate. In a previous post I calulated a daily rate of 152K TPD.

But if we conservatively stick to the lowest number of 40,000 and use the present nickel price of $15,500 USD per tonne and the $6,000 USD given for operating costs, we arrive at 40,000 X (15,500 - 6,000) = Free Cash Flow of $380M per year. So we are down to less that a 4 year payback on capital costs.

Looking good.

AlternativeView wrote: See video at time of 0:50

https://www.proactiveinvestors.com/companies/stocktube/9250/fpx-nickel-says-nickel-prices-will-continue-to-rise-after-years-of-being-in-oversupply

$6,000 USD per tonne = $2.72 USD per pound = $2.10 CAD per pound.

The old PEA from 2013 used $3.23 CAD per pound. This is a cost reduction of (3.23 - 2.10) / 3.23 = 35%.

And then we need to add in the expected increase in payability.