Canada Nickel Company Inc V.CNC

Canada Nickel Comparisons (by Golgfinger at CEO.ca)

[ourrug]

Canada Nickel has been oscillating in an increasingly narrow range in recent weeks. I expect we will hear from the company fairly soon. CNC continues to be one of my top 3 holdings by dollar amount. 

 

The comparisons to Dumont are a bit overdone in some ways. Key data valuation event was March 2017 when Waterton acquired 50% of Dumont at a valuation of $C 60 million for 100% of the project.  The July transaction is pretty meaningless – and when you see what real market valuations for transaction look like below – would ask some pretty serious questions of KRR management.

 

Best place for market comps for nickel is Australia – Australia has a number of nickel companies and a retail and institutional investor base that are active nickel investors.

 

Can look at valuations of several companies at the same time Dumont transaction completed in March 2017 and what they are today – ASX best exploration/development comps and some TSX comps below:

 

• Mincor was $40 million ($0.21 x 188 MM shares) – Market  cap now $480 million  - 12 X increase
• Poseidon $30 million (3.8 cents x 856 MM) – now $180 million – 6 X increase

 

And a couple from TSX:

 

• Giga was $5 million – now $34 million – 7X increase
• Talon was $10 million – now $300 million – 30X increase

 

Using ASX comps with 6-12X increase, Dumont would be valued today at $360-$720 million. 

 

See here https://ceo.ca/cnc?8dbd821fffd7

 

[EndZonefor7]

Excellent points by Goldfinger. Dumont deal was done in a cr@ppy nickel market and is owned by a fund who has more financial flipping interest than actually starting up a mine. Sean needs some better quality hooch. CNC is as solid a mining company than any I've come across in a long time.