Canada Nickel Company Inc V.CNC

Dumount looking to unload for 1 billion

[idlefreebird]

https://www.mining.com/web/waterton-seeks-up-to-1-billion-for-dumont-nickel-mine/

[apapas1973]

Yeah I read that. These guys had no intention of building it. They wanted to flip it. CNC will get built or at least get started, prove its doable and then Selby will start an auction on it.

[idlefreebird]

apapas , I had calculated before for every BILLION on our sale tag at this share count we would get approximately $11.00 a share...bring on the multiples lol...glta

[apapas1973]

Also Idle, there's something I recall reading i believe in that Mackie report that endzone posted a while back that stated Dumont had restricted property bordering i think on one side. If this is some protected property, then these guys are going to have govt officials breathing down their necks the entire time. I think Mark knew the potential was limited as he has stated many times in the

[idlefreebird]

apapas, yes just the beginning..glta

[EndZonefor7]

We should be at $11 already on that news. Dumont was always rumoured to be a flip for Waterton, and now it's fact. We just need some drill news from McDaddy and the other 4 JV's and we'll be multiples of Dumont price tag. Nice way to close the week tho, I added a few more this week, bargain basement price still. 

[DrNo1962]

"Dumont was always rumoured to be a flip for Waterton"... Hummm. Serious question... Why did Selby JV a 50% interest in Dumont to Waterton in Mar 2017 for $30M? *Bankable* feasibility on Dumont in 2013 (pre-Selby) indicated $1.1B NPV and 15% IRR for Dumont. https://www.prnewswire.com/news-releases/royal-nickel-files-dumont-nickel-project-bankable-feasibility-study-technical-report

[apapas1973]

Drno, deep down I think Selby knew Dumont had limited upside. As Mark has stated a lot of companies start to head down after the PEA. I believe until they can build out the mine, start production and bring in some cash, many investors head for the doors. Think about all the complications that can arise during that phase. Also 2017 is different than 2021. The nickel price at that time was hovering

[DrNo1962]

As CEO of Royal Nickel, Selby JV'd a 50% interest in Dumont to Waterton in Mar 2017 for $30M. *Bankable* feasibility on Dumont in 2013 (pre-Selby) indicated $1.1B NPV and 15% IRR for Dumont. Then RNC/Selby withdrew $10M cash from the JV a year later to dilute interest to just 28% and RNC Minerals (now KRR.v) sold this 28% to Waterton in 2020 for just 'up to' $48 million. So... Waterton

[EndZonefor7]

Who cares about Dumont's past dealings, other than the RNC sour gripers. All that matters is Dumont now has a $1 billion price tag on it now due to a entirely new EV market and a major emphasis on North American clean nickel supplying our manufacturers with zero dependence on China. Justin even emphasized that this morning in his G7 closing speech about supplying our partners with "

[DrNo1962]

Dumont was effectively sold to private equity for less than $100 million. That is shareholders received less than $100 million for an asset that was valued at $1.1 billion in bankable feasibility study. This asset - about 4 years later is now publicly being marketed by this private equity firm in the $1 billion range. If I was shareholder of RNX.v (now KRR.v) I would not be happy. Why is any of

[apapas1973]

I understand what you're getting at Drno. Why did they sell it for 1/10 the valuation. I don't know the specifics of the deal. I can't comment on that specifically. But from 2013-2017 there was a loss of 30-40% on the price of nickel. I don't care if your company has a one trillion valuation. If the potential buyers feel they're buying in a weak market or the top of the market,

[Mikeymike426]

DrNo1962 There are many underlying factors that come into play which I would like to highlight and maybe offer some clarity on this subject. 1) At the time of the JV, Nickel was at an all time low and nickel commodities were being sold for less than fair value. So at the time 30 million was very much in line with the industry standard. In fact they valued Dumont at close to what the overall

[EndZonefor7]

Thanks for the clarification Mikeymike. Different markets at different times makes for huge price discrepancies. This is where the astute investor looks for the diamonds in the rough like CNC when it was way under $1.  You only have to look at the gold/silver mining bizz over the last 20 years to see piles of mines and projects go for pennies on the dollar because those were the market

[DrNo1962]

While we wait for news... Serious question... This has been on my mind for some time...  Why did RNC JV a 50% interest in Dumont to private equity firm in Mar 2017 for just *$30M*? *Bankable* feasibility on Dumont in 2013 (pre-Selby) indicated $1.1B NPV and 15% IRR for Dumont.  50% JV'd to private eequity for just $30M? https://www.prnewswire.com/news-releases/royal-nickel-files

[apapas1973]

Don't know the specifics of that deal DrNo, but 2013 and 2017 were very different times when it comes to the price of nickel. In 2013 nickel saw an average of about 15500/ton or about $7 a pound. In 2017 about 10,000/ton or around $4.50 a pound. That's a a huge drop without any real tailwinds. Executives don't always make the best decisions in real time when it looks like the sky is

[Rm90090]

Karora bought RNC and was on board with the Nickel direction, but they accidentally came across a large gold discovery in Australia. They switched directions and sold the deposit for cheap in order to grow their gold operations. Karora is doing well and producing gold regularly now I Beleive. I thought the same thing - this is supposed to be over a $b discovery and they sell it for that cheap

[caramba71]

The same kind of thoughts cross my mind from time to time. But keep in mind the following: Price targets by various broker houses that are specializing on this and know a thing or two A new approach to Ni mining that is carbon neutral (if not negative) Big guys not looking at targets unless FS is in and CNC has multiple properties to add and make this a district opp Patience required