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Fortune Minerals Ltd T.FT

Alternate Symbol(s):  FTMDF

Fortune Minerals Limited is a mining company. It is engaged in the exploration and development of mineral properties in Canada. It is focused on developing the NICO Cobalt-Gold-Bismuth-Copper Project in the Northwest Territories and Alberta that produces a bulk concentrate for shipment to a refinery that it plans to construct in southern Canada. It also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 kilometers (km) north of the NICO Deposit and is a potential future source of incremental mill feed to extend the life of the NICO mill and concentrator. It also maintains the right to repurchase the Arctos anthracite coal deposits in northwest British Columbia. It also has a 100% interest in these 116 hectares of property south of Great Slave Lake with copper, silver, gold, lead and zinc showings. It has a 1% net smelter royalty covering 78 hectares of land positioned in a former silver mining district, located south of the Eldorado mining district at Great Bear Lake.


TSX:FT - Post by User

Post by MoneyMan123456on Feb 21, 2022 10:10pm
250 Views
Post# 34449012

New Thoughts on NICO

New Thoughts on NICOCheck out this article from bloomberg (Feb 22, 2022,  Cobalt Powerhouse Doubles Down on Nickel).

I believe the reason you haven't seen more interest in NICO is because no one is really sure what the Cobalt demand is going to be 4-5 years down the road when NICO could hypothetically come on-line.  Ideally they would be producing now, when prices are roaring, but that ship has sailed.

Given the scarcity of Cobalt, and the rise of electric car battery demand, it seems assured that new technology will be developed that minimizes Cobalt requirements.  This is a big risk for investors.  That, coupled with the terrible mining environment is the NWT makes it hard to find a partner.

Nico may be able to take advantage of the impending closure of the Diavik Diamond Mine (2-3 years down the road) and purchase mining equipment, crushers, drills, vehicles, structures, pipelines, processing equipment, spares, etc. for pennies on the dollar.  Saving 100 million on construction costs could be a difference maker.

Overall though, Fortune needs to put together a coherent strategy and update the FS.  IMHO, management appears to have done well over the years, but shareholders....not so much.
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