RE:CNC~Mikeymike426~GET A COFFEE~GET YOUR GLASSES~GET HIGHLIGHTThis post is very deceptive. Why are you so compelled to post things from CEO? If we wanted to read CEO we would be there. But that website is far too curated in favour of the sponsors in my opinion.
There is a recognized flaw regarding carbon credits and they most likely not going anywhere or worth anything.
They do not invest in actions to avoid emissions because they are able to buy unlimited credits. In this case, the reduction of 1 ton of carbon, that is, 1 credit, will never be enough. Because, in fact, somebody will use this ton, so there won't really be an emission reduction. moneywagon wrote: THANK YOU for all your contributions Mikey, our friends travel in the same circles @Mikeymike426 For those who missed it as it keeps getting buried… Here are the highlights of improved metrics. I wanted to highlight what has changed since the PEA and what we can expect to improve in the Feasibility study. Just a little exercise to help people see CNC's true value.
So, let's start with the highlights of the PEA released July 12th, 2021. 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 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. Source for 1st quartile costs – Wood Mackenzie and S&P Capital IQ; Priced as of May 20, 2021. C1 cash cost, AISC, EBITDA and cash flow data are non-IFRS measures. Refer to Non-IFRS measures. From here we can start to look at what metrics have improved upon and incorporated into the feasibility study. Notes 1) Resource - In the PEA it was projected that Crawford had a mine life of 25 years, however our first improved metric was the resource update! This doubled the resource to 1.4 billion tonnes of nickel grading .24% with the addition of 113 new holes. But it will grow because there were 54 additional exploration drillholes in the East and Main Zone that didn’t get included. These additional resources add at least another 20-25 years bringing us to a 45 – 50 -year mine life. Updated Mineral Resource Estimate Doubles Measured & Indicated Resources at Canada Nickel's Crawford Nickel Sulphide Project @newswire/updated-mineral-resource-estimate-doubles-measured
2) Metallurgy – The target for recoveries was 35% so when we see an announcement that they are recovering 63% on low grade material and 46% concentrate (which is the highest known recoveries from any project globally) one might have grounds to get excited! Why? Because, each percentage point of improvement in nickel recovery would yield a US$92 million improvement in the value of the NPV8% of the project, based on the Preliminary Economic Analysis ("PEA") metrics. Additionally, Nickel recovery from the slimes circuit was not included in the reported results and represents a further opportunity to improve flowsheet performance and will be evaluated during this phase of feasibility work Canada Nickel Continues to Demonstrate Substantial Improvement in Metallurgical Performance and Provides Corporate
Update @newswire/canada-nickel-continues-to-demonstrate-substantial 3) Carbon Capture – In a huge development, Canada Nickel announced that they can capture 710,000 tonnes of CO2 credits annually and 18 million total tonnes over the expected life of mine! With carbon credits sitting at $50 per and projected to hit $180 it could produce an entirely new revenue stream for the project while helping the environment. For context, that’s $35.5 million in revenue @$50 and $127 Million @ $180… Now add that to these figures… Significant earnings and free cash flow generation. Annual EBITDA of $439 million and annual free cash flow of $274 million. Canada Nickel Identifies New Method for Accelerated CO2 Capture
@newswire/canada-nickel-identifies-new-method-for-accelerated
4) Spot Price of Nickel – The price of nickel will drastically affect profit margins so the fact that its approaching $13 per pound bodes very well for CNC. I’m sure I’m missing something in there but these are just some examples of how the company is creating real value which will reflect in the upcoming Feasibility study. Lastly, I would like to highlight that they have agreements with 2 first nations groups, The city council and local MP’s are in full support, Permitting has already been started and majors are inquiring regularly. Don’t be surprised to see the provincial government invest as there is a glaring need for nickel and CNC might just be the best option on the planet. Anyways, I think you get my point. This stock is grossly undervalued and as noted above you can see why I believe $CNC is in for a big re-rate post feasibility study. 9
@Brandy Total resource is 1.4 Billion tonnes of Nickel ore. So there it starts with a very large “B”. Thus, Crawford is still growing. So CNC in the next year or so with its FEA, large reserves & surrounding regional resources will dwarf all others in North America and the rest of the World. 3