Canada Nickel Company Inc V.CNC

Selby interview

[Rm90090]

Mark Selby had an interview about the general nickel market yesterday and he was asked about the PEA for CNC. He didn't want to give much away but advised for us to go to the Dumont website to have a look at their PEA to get an idea of what to expect. As most of you know he was previously the CEO at Dumont amd spearheaded them as they got their nickel project set up.

[caramba71]

Did I read this right? Dumont:  From PEA to FS it took 3 years CNC:  Plan: PEA (May 2021); FS (December 2021) - 7 months. How's that possible.

[EndZonefor7]

caramaba,  Dumont had some issues where they had to redo their FS. Not sure of the particulars but Mark mentioned it in a couple of interviews. 

[apapas1973]

Everything Selby is doing is lightning fast. I'm sure he wants to be first out of the gate. The early bird gets the worm so to speak. He can lock up the deals. It wouldn't even surprise me If the US govt talks that they had a while back that he refused to comment on further are included in that.

[PCGuy10]

Would someone be so kind as to post the link to Dumont's PEA? That would be great thanks!

[Geobizz7]

Here it is. It is actually more in depth then a PEA. Dumont have completed a Feasibility on there project.  https://dumontnickel.com/wp-content/uploads/2021/02/Dumont-Ni-Project-43-101-dec-2019.pdf I hope Selby is not serious. Because Dumont is not good. They have been Construction ready for 5 years and cant raise a penny for construction because the economic are just not good. Anything

[Rm90090]

Geobizz, I think the main difference between Dumont and CNC is that the Crawford deposit (and hopefully other deposits they add to their chest) contain high grade cores. He has said in past interviews that this is the difference between the projects. The hope is that the higher grade core brings down the overhead cost considerably.

[EndZonefor7]

Don't forget the PGE's too, they will pay for the start up cost. I understood that 15% IRR is more than suitable a number especially with the volume of nickel. All comes down to the metallurgy which has shown profitable numbers. Dumont has other infastructure issues that CNC doesn't along with their ownership. 

[EndZonefor7]

Don't forget who has the highest grade sulphide concentrate in the world from their high grade core. This will fetch a premium when combined with the Net Zero process. Friedland went indepth on the new marketing of metals grades and where they came from.  "The 52% recovery from a higher-grade core sample marks another excellent step forward for the Crawford project.  Half of

[Geobizz7]

PGEs you dont get paid much into a Nickel Concentrate. You often get penalise by the smelter when you have it. I have been in Sudbury for too long :) AS for the infrastructure I think both have issues. Dumont have to built everything. Whereas CNC, they think they can use Kidd capacity at 12kt/year. That is not big enough for them to get economies of scale. They need 40kt / day capacity to get

[EndZonefor7]

I think the PGE's is a huge cash positive with a 400 metre wall for multiple kilomtetres. Don't think Mark wouldn't be touting it that way if it wasn't fact.  I prefer to follow the money as the last 90 days the market has bought up $148 million worth of stock at $3.47 average. Money talks as they say. 

[idlefreebird]

geobizz , originaly I believe Mark was going to come in with a 40,000 tpd mill but will come in at a 75,000 tpd project as the pilot plant is to prove he can succeed in recoveries.. .now with the Glencore pilot plant he will be upgrading the original D circuit that was a first in my years as a no glitch circuit from the first Montcalm rock that got crushed...they sent the slurry by truck to

[Geobizz7]

I know the D circuit and the Montcalm deposit at 1.1% Ni.that was a nice open pit.  I dont think there is a buyer for the CNC project. I think all the smelter will sit and say, build your concentrator make your concentrate and will buy your product, that is what I see as  the best possibility for the project. I dont know if Selby can pull this off.  Building a smelter for a 0.3

[idlefreebird]

geobizz, Montcalm operation was underground and it halted after a crown pillar let go barrying 2 levels..it still sits there with lot's of nickel underground..time will tell..glta

[EndZonefor7]

I think you're underestimating the coming nickel supercycle. The massive shortage of clean nickel in North America with JT's and Biden's electrification and national security concerns for essential metals front and center, is going to push nickel prices to much higher prices. This is a monumental shift in our economies and industry for decades to come. Just as gold mines became

[Geobizz7]

Dont worry ENDZONE, I am not a naysayer , I came in at 0.45$ so I am making close to 10x. and I came in as Mark is a good promoter. I did the same at DUMONT you just have to know when to pull out before the wheels come apart. I am more of a realist and been in this market, same place different time.  In terms of Nickel price, this is the problem everyone gambles on it. The only one that dont

[CravingProfits]

Hopefully the institutions will come in once they have factual cost and profit numbers?

[EndZonefor7]

Fair enough opinion geobizz, so that means you're out now ? I didn't say astronomical prices, I said much higher than present. The market will have no choice but to absorb it with the IEA saying to stock pile battery metals ASAP. This is a metals war with China like none seen before.  I see a dozen new EV models in the market place coming with Euro sales up huge. With mass base metal

[Geobizz7]

 I am not out. But the PEA will play big time in my decision. IF its a copy past job of DUmont not good, if it does not put inlcude, Smelter cost per tonne of concentrate in the calculation forcut off fthat is a problem! how does is the plan to deal with the thick overburden? how the engineering thought in keeping the water out of the pit. ESG consideration. The net-zero has been just words

[EndZonefor7]

All viable concerns but where there's a problem, there is usually a solution, we have a strong mining team to figer these things out. I swore I read that FPX is in the middle of nowhere with astronomical start up costs which usually add minimal $1 billion plus before you start to consider mine building costs. Much bigger problem than serpentine versus brucite concerns.  If I was up a

[SeethingHedgie]

FPX's PEA has 1.67B USD in startup costs, total. Post tax NPV of 1.72B USD, with a post-tax IRR of 18.3% and a post-tax payback period of 4.0 years, assuming a nickel price of 7.75/lb. AISC of 3.12/lb. This doesn't account for the iron ore byproduct (which they are doing metallurgical studies to quantify as we speak) or the potential double-up from Van (drills will be turning this month).

[EndZonefor7]

Good luck finding a financier in the middle of nowhere. Bet it's over $2 billion needed by end of the day. CNC has them all beat hands down with ESG friendly terms the market is searching for.

[SeethingHedgie]

What, in your opinion, makes CNC more ESG-friendly than FPX?

[EndZonefor7]

Clean Ontario hydro produced electricity, and electric trucks and shovels for starters. Versus FPX burning/trucking in a gazillion gallons of diesel to produce their power.

[caramba71]

@ gebizz7 "The facility has a design rated capacity of 12 500 tpd and is fully permitted with water taking and discharge permits and thickened tailings storage. The site has incoming and outgoing rail service via Ontario Northland Railway." From MS' interviews the idea was to get to a faster start and generate steady monthly cash flow so that overall capex is coming down. It will