| We are pleased to announce that Hannam & Partners have initiated coverage on Power Nickel with a target valuation of C$0.45 for December 2024.
Below is the Executive Summary of their inaugural report.
Executive Summary
Power Nickel is a Toronto-based, TSXV-listed exploration company with assets across North and South America, spanning copper and gold, with its core asset being the Nisk nickel and PGM deposit in Quebec, Canada. Power Nickel, previously Chilean Metals, purchased the option to acquire an initial 50% interest in Nisk, followed by a further 30% on the completion of key milestones. The final milestone for this additional 30% was the recent NI 43-101 technical report, and we expect the 80% ownership to be announced imminently. Critical Elements Lithium (“Critical Elements”) retain the remaining portion of the property with a free carry through exploration.
Power Nickel is the operator at Nisk and has led the exploration, resulting in a 117% increase in resource tonnes in 2023 to 7.2Mt grading 1.12% NiEq. We note there is still considerable resource upside at Nisk with the deposit remaining open at depth and in multiple directions, with further potential to link targets at depth. The new discovery in May 2023 of a PGM rich zone at the “Wildcat” target, 5km NE of Nisk, further underlines the prospectivity of Power Nickel’s licence area. On visual inspection, the first follow-up drill hole at Wildcat appears to have intercepted similar mineralisation.
The Company also sees potential value creation through the improvement of the conservative recovery rates currently assumed within Nisk’s current Mineral Resource Estimate (i.e. 70% Ni, 44% Cu, 79% Co and 67% Pd). Power Nickel is exploring this option through its recent partnership with CVMR, a metal refining technology provider with an extensive track record in metal refining, as well as the production of upgraded nickel products. CVMR invested in Power Nickel in 2023 and own 4% of the equity. Combining this technology with the Nisk deposit’s upside potential, local hydro-power, substantial infrastructure, and tier 1 jurisdiction, we believe the project has the ingredients to become a strategically important medium-term source of nickel from within North America, supporting the energy transition with strong green credentials.
If you would like to get access to the report, please feel free to reach out to:
Roger Bell
Managing Director, Research
T: +44-207-907-8534
E: rb@hannam.partners
Jonathan Guy
Director, Mining Research
T: +44-207-907-8500
E: jonathan.guy@hannam.partners |