Canada Nickel Company Inc V.CNC

CNC LET'S LOOK AT THOSE NUMBERS AGAIN~SHOULD BE TRADING @$4

[moneywagon]

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TORONTO, July 12, 2021 /CNW/ - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQB: CNIKF), has filed a Preliminary Economic Assessment ("PEA") for its wholly-owned Crawford Nickel Sulphide Project ("Crawford") located in Timmins, Ontario, Canada. The PEA is available on www.sedar.com and on www.canadanickel.com.

Crawford's Net C1 Cash Cost vs 2020 Net C1 Cash Cost of Global Nickel Operations (CNW Group/Canada Nickel Company Inc.)

The PEA, titled "Crawford Nickel Sulphide Project NI 43-101 Technical Report and Preliminary Economic Assessment" was independently prepared by Ausenco Engineering Canada Inc., in accordance with National Instrument 43-101 ("NI 43-101"), as previously announced in a news release dated May 25, 2021. Canada Nickel is advancing the project to a feasibility study, which is expected to be completed by mid-2022.

Highlights of the PEA

The PEA indicates a 25-year mine plan based on a phased 120,000 tonnes per day open pit mine and processing operation using conventional nickel sulphide concentrator, producing nickel concentrates and magnetite concentrate.  

Over the 25-year mine life Crawford is expected to produce 842,000 tonnes of nickel, 21 million tonnes of iron and 1.5 million tonnes of chrome valued at $24 billion using long-term price assumptions. Annual average nickel production of 75 million pounds (34,000 tonnes) with peak period annual average of 93 million pounds (42,000 tonnes), with significant iron and chrome by-products of 860,000 tonnes per annum and 59,000 tonnes per annum, respectively.

• After-tax, $1.2 billion NPV8% and 16% IRR at long-term price assumptions (Note 1)
• Large scale, low cost, long-life
• Significant iron and chrome by-products of 860,000 tonnes per annum and 59,000 tonnes per annum, respectively
• Life-of-mine net C1 cash cost of $1.09/lb and net AISC of $1.94/lb on a by-product basis (1st quartile) (Notes 2 and 3)
• Life-of-mine production of 25 years with 842,000 tonnes of nickel, 21 million tonnes of iron and 1.5 million tonnes of chrome valued at $24 billion using long-term price assumptions (Note 1)
• Significant earnings and free cash flow generation. Annual EBITDA of $439 million and annual free cash flow of $274 million (Notes 1 and 3)
• Minimization of carbon footprint through use of autonomous trolley trucks and electric shovels, which reduces diesel use by 40%. Optimization of the carbon sequestration potential of tailings and waste rock.

Notes and Assumptions

1. All dollar figures are in United States ("US") dollars. US metal prices used in the PEA were $7.75/lb nickel, $1.04/lb chromium, and $290/tonne iron. A US dollar exchange rate of 0.75 was applied.
2. Source for 1st quartile costs – Wood Mackenzie and S&P Capital IQ; Priced as of May 20, 2021.
3. C1 cash cost, AISC, EBITDA and cash flow data are non-IFRS measures. Refer to Non-IFRS measures.
4. A full copy of the Technical Report and PEA, including material assumptions, notices and cautions, can be found on the Company's profile at www.sedar.com.