Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Bullboard - Stock Discussion Forum 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... see more

TSXV:CNC - Post Discussion

Canada Nickel Company Inc > Conservative or Not...
View:
Post by caramba71 on May 10, 2021 10:11pm

Conservative or Not...

Had to remind myself what we got here and as I love spreadsheets...:

- Crawford alone shows north of 14Bio worth of Ni/ Ni-Sulfate Concentrate (based on 40% recovery rate) in the ground
- Additional metals (Cobalt, ...) add another 3-4 Bio (40% recovery rate)
- Capex somewhere short of 1Bio (based on Selby's comments my guess would be 800-900Mio)
- Based on Crawford alone and a $3.1 cost/lb (all-in),  my estimate for pre-tax & discounted NPV is somewhere in the range of 7.5-8.5 Bio (US).
- With an NPV/MarketCap multiple similar to some other mining companies this would translate into a market cap 20-30% above current levels.
Notes:
- This is for one property - CNC got a bunch of other properties (Kingsmill, Nesbitt, Mahaffy, McDiarmid), one already being estimated 15% larger than Crawford, but they won't be included in this first PEA
- This is without any of the other metals included (Co, Fe, Pd, Pt) which add another ~25% on top (left them out as I wasn't able to guess the cost/lb).
- The $3.1 cost/lb is probably on the conservative side and I would hope we see <3 number
- Avg. recovery rate could be higher

Numbers are quite sensitive w/r to cost,recovery rate and Ni price but I do feel we are priced fairly with a ton of upside potential.
I just don't expect a huge immediate jump with the release of the PEA, rather than crawling further up getting into the high 4's with the PEA release which seems reasonable.

In for the long run anyhow.

GLTA
Comment by SeethingHedgie on May 11, 2021 3:29am
If Selby puts out an NPV even approximating 7-8B then I believe that CNC should double or triple overnight. Assuming an AISC of $3.1/lb seems rather optimistic, as opposed to conservative. Sub-3 seems impossible, without substantial metallurgical work to determine the potential for and quantify the amount of byproduct opex credits. Your capex number seems reasonable, I think, but wouldn't be ...more  
Comment by caramba71 on May 11, 2021 11:36am
My NPV estimate was pre-tax, discounted and rather than using the Nickel price I assumed that the product sold will be some kind of Ni-Co-Su concetrate which generates less than Ni when comparing prices per ton. I'm sure someone here with more mining background can eleborate on that and the following: Also, I have no idea what revenue can be expected from selling Fe, Co, Pd, Pt. Are they a & ...more  
Comment by caramba71 on May 11, 2021 11:41am
meant 'yield lower profits for those metals.'
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities