Research Capital raises target price to $3.45 CNC Test 3 More Targets - A Camp in the Making
CNC Continues to Define More Targets
On May 24, 2023, Canada Nickel Company Inc. (CNC) announced the results of drilling on
three properties: Mann Northwest Property (Mann), Midlothian, and Sothman. At Mann,
the assays remain pending, but the high-level description of the rock types encountered
are in line with the target geology and, in our view, indicate that Mann may be the next
nickel deposit in CNC’s regional project. We believe that CNC is successfully defining a
camp-sized area play with multiple, very large (1Bt+) targets that could one day become
one of the major nickel producing regions of the world. Increasing Target to $3.45/sh and Maintaining SPEC. BUY
CNC continues to define and develop a number of nickel-bearing ultramafic targets that,
in our view, may one day form a major nickel mining complex. We believe that it will be
necessary to define a number of economic deposits to entice a major mining company to
make the very large investment required to build and develop one or more mines and
mills. We think CNC is well on the way to accomplishing that goal. We have made small
adjustments to our model to reflect the company’s cash balance, debt and fully diluted,
in the money share count. As a result, we are increasing our target price modestly, to
$3.45/sh from $3.24/sh, previously (our target is based on 0.2x NAV). We maintain our
SPECULATIVE BUY rating.