Tormont Group: Tormont-Report-on-NIM-9-7-23https://nicolamining.com/files/Tormont-Report-on-NIM-9-7-23.pdf
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DESCRIPTION: Nicola Mining Inc. NIM $0.185 TSXV Exchange | OTC: HUSIF | Market Cap $59M Description: Nicola is a junior mining company with a unique and very valuable set of assets in British Columbia. See Figure 1. Most notably, Nicola is both cash flow and earnings positive, which is almost unheard of amongst junior mining companies. Furthermore, the company owns the New Craigmont Copper Project, which is valued at $62.5 million based on a transaction valued at $25.0 million announced yesterday with a leading Japanese mineral resources company. See pages 8-9.
In addition, Nicola owns 100% of Merritt Mill, the only facility in British Columbia permitted to process third-party gold and silver throughout the province. The cost merely to secure a permit to build such a processing facility would be in the tens of millions of dollars, and total construction costs would likely exceed $100 million. Even more daunting: the time entailed for a new entrant to build a processing plant -- from discovery to appraisal to construction – probably is 13 years or more. Remarkably, investors have assigned Nicola an enterprise value (EV) of only about $61 million, despite these high-value -- and in Merritt Mill’s case, nearly irreplaceable -- assets. I
In addition to construction costs, when one considers that it requires an average of 13 years1 for a project to garner mine permits in British Columbia, as well as millions of dollars to complete required processes, there is significant value in Nicola’s Treasure Mountain Silver Mine and New Craigmont Copper Project mine permits and the Merritt Milling Facility permit.