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Canada Nickel Company Inc V.CNC

Alternate Symbol(s):  CNIKF

Canada Nickel Company Inc. is a Canada-based company, which is engaged in advancing the nickel-sulfide projects to deliver nickel required to feed the electric vehicle and stainless-steel markets. The Company owns flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp. The Company also owns 25 additional nickel targets located near the Crawford Project. Its wholly owned NetZero Metals Inc. to develop zero-carbon production of Nickel, Cobalt and Iron and applied for the trademarks NetZero Nickel NetZero Cobalt and NetZero Iron across several jurisdictions.


TSXV:CNC - Post by User

Comment by IgnacioCashmereon Jan 12, 2024 10:28pm
252 Views
Post# 35824802

RE:4 dollar stock??

RE:4 dollar stock??The language of today's news release is significant & a Tell. Samsung has the option to buy 10% of Crawford at a valuation of $1 billion USD. That means Crawford is for sale for no less than $1 bb to any buyer. At about 42% of NPV, that is a realistic value at this stage.  There is permitting to complete & there is no way to shorten that timeline. So that means CNC is worth substantially more in a buyout because they hold potentially 10 more Crawford equivalents. At 167 MM fully diluted shares, $4 is not even in the ballpark. Crawford is worth $6 share. The cash on hand will be used to advance permitting & likely to drill the other deposits so they can start getting mineral resource estimates. The typical buyout value at the MRE stage is 1% of the metal, so we might say $250 MM each for $2.5 BB total for the others. A takeout today at $3 BB for everything would be reasonable but very few consortium can come up with that kind of money. I am not expecting an imminent buyout but it seems Mark is telegraphic he is shopping for Crawford for sale right now. Samsung has not bought 10% of Crawford, an asking price has simply been established at minimum. Safe to assume no way we get bought out for anything <$6 from this day forward. Mark's trips to South Korea paid off, & a battery maker as buyer is proof Crawford's nickel is battery suited. It's a huge validation of the viability of Crawford. Enormous sums must still be raised to get it in to construction, but today is a huge leap forward in valuation. In my experience,  Canadians take their time to digest big news. It will take time for this milestone to be reflected in the SP but the reality of value here will be reflected here in the SP in due time.
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