HEDGING NICKEL Is there such a thing as hedging nickel ?
There is if, one thinks in terms of, falling nickel prices which usually coincides with Majors wanting
to scoop juniors on the cheap.
Does a junior stick to,
keep drilling a resource and compond on all the more resource ?
Or, look to find higher grades ?
Those moves will help, but not as much as....
formulating a hedige against falling nickel prices and... pushing yuor valuation all the higher
while nickel prices dip.
How does one do such a thing ?
A junior has to prove trheir " nickel project " is far better than their nemesis peer.
Which why....
reducing mining costs in nickel dip cycles will create an added value - hedging.
- switch up concentrate mindset to = near finished metal nickel product - electrolysis
- reduce power costs to a point - the nickel project supercedes all other projects.
I've spoken already about - chloride nickel electrolysis
and... river turbines converting electricty to function hydrogen cell gas production.
Let's, again pull forward - CNC's run costs - see if there are any other reductions
cnc = nearby timmins nickel peer )
In my former post i had also mentioned - creating a hydrogento not only fuel mining equipt but why not add in the mix - mine trucks hauling ore rnning on hydrogen.
CNC - COST PER TONNE -
Operating Costs
($ / tonne milled) US$ C$
Labour $2.39 $3.19
Consumables $2.49 $3.31
Maintenance $1.70 $2.27
Diesel $1.02 $1.36
Power $2.45 $3.26
Other $0.95 $1.27
TOTAL $11.00 $14.66
EVNI - HYPOTHETICAL -
River power to operate hydrogen fuel cells
Hydrogen fuel cells make hydrogen gas for ore hauling trucks
Hydrogen fuel operates gas turbine to produce electricity
Lets noe deduct -
$2.45 / tonne power
$1.02 diesel gas
$1.00 - reduction from consumables ( acids )
running a homaoganous chloride extaction process ( leaving $1.49 ) for consumables
= $4.47 from ( $11 + $14.66 )
TOTAL $ 6.53 $10.19
And... if one produced ( metal end product )
It would hedge the company all the more with the protection of,
$10,000 / tonne nickel product
vs
trying to make it work with a low payable concentrate.
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LINK -
https://canadanickel.com/wp-content/uploads/2021/05/Canada-Nickel-PEA-Presentation-052621-final.pdf
Yup.... if this junior works the angle of - river power - hydrogen.
And, higher end finished nickel product
They'll be working for the - common investor.
If they keep drilling, and work a concentrate - i'll know who they're working for.
Wink. ( tease )
Figures are ( hypothetical in nature )
Rough comparables - not investment adivce.
Figures may be indifferent than what evni - actually can do, would do, or is capable of doing.
But.. if the junior ever did adopt the above formula,
I don't think there would be a nickel junior from far or wide could touch them...
those working the concentrate angle.
The RIVER.... is their ace card.
Just an opinion.
Cheers