Canada Nickel Company Inc V.CNC

The importance of running a tight ship.

[apapas1973]

By now I'm sure everyone is aware of the Tesla/Talon (TLO) deal. I used to own TLO. TLO has seen a roughly 20% increase in price. And I'm sure there will be more increases in the future. However Tlo needs to come up with more capital to purchase the remainder 9% of their project as part of this deal and Tesla is expecting a carbon neutral mine. TLO "is hoping" the technology their testing will absorb the CO2. If not, I'll tell you Tesla will say bye bye. They can't be associated with them. If this deal was with CNC, you would have seen a 50% increase minimum. Probably even a double to start. The reason being is, for one, Tlo can only option up to 60% of their project and more importantly they have a huge share count. You need to own a toooonnn of shares to benefit from any rewards. Dilution is very important aspect to keep in line. As bloody frustrating as CNC is at times, I have to give Mark credit with the way he's structuring this. Not only does he not want to give away large chunks of the company, but at least so far, he's keeping the share count low. Actually really low. This makes it virtually impossible for any hostile takeovers and any price appreciation from positive news will be massive. Not only that but as we're all aware, Mark himself owns a ton of shares. It wouldn't even surprise me if Tesla already approached CNC but possibly they wanted too much. I think this will be a sticking point with any deals that we make. If that's what Mark is doing I hope he bends when he needs to. We don't want to make it completely impossible to make the right deal. Just my opinion... GLTA

[Iwant2Retire]

But I believe Tesla invested in TLO because they had high grade nickle vs low grade.  And partially because the nickle is in the U.S.. But if TLO has an agreement with Tesla, I'm sure they will be able to come up with the capital to do the project.

[apapas1973]

If you go back a few posts iwant2retire you can read some informative posts regarding the importance of being able to extract the nickel efficiently. Being a higher grade isn't necessarily always a better option. Plus then you have major infrastructure costs. A lot of these mines won't get built. Im sure TLO will.

[Iwant2Retire]

My point exactly.

[Ivorygull]

Many good points apapas1973. Your comment on Mark and Tesla is interesting as I thought the same the other day when it was pointed out the BHP had gone to Africa. I was thinking...ok, I hope in some way that Mark has had discussions with them, and has not let them walk all over us, but at the same time as you put it " I hope he bends when he needs to" at the level we are all happy with.&

[Ivorygull]

So I'm now guessing the partner is either going to be Sibanye, Glencore or Vale. As long as we go up in share price by having a partner, it doesn't really matter to me who it is.

[reddog11]

All good posts. I think as I stated before, that CNC selling has been due to a "why did Tesla go to TLO and why did BHP go to Africa if CNC has a better model. I cant answer that. I can just say its my belief thats why we have been clawing to stay in the 335-345 range with NI over $10, AT some piint the selling will dry up. CNC has such a low share number compared to other juniors and there

[evnut1980]

I think we also have to remember that the deal w talon for example will make something like 1.2 million cars... well, by 2025 when they begin mining, tesla will be making like 5-7 million cars (not all needing nickel) .. but tesla (and others) need much much more nickel and miners. I could b wrong??

[evnut1980]

Sorry, I heard 1.6 million cars.. but that is over the 6 years... lots of nickel needed unless battery tech evolves.