Canada Nickel Company Inc V.CNC

BHP offers $7.5B Cdn to buy Oz Minerals Low Grade Nickel dep

[Rm90090]

Oz Minerals turned down an offer of over $7B from BHP for their low grade nickel and copper deposit. Their average nickel grade is Approx 0.32%. What CNC is trying to do isn't unheard of. It's just new for Canada. Canada has a history of large scale high grade deposits from decades ago. But nothing like that has come in a long time.

Australia has companies that operate lower grade nickel mines. They understand lower grade nickel. The investment thesis with CNC is that the EV revolution is going to make these multinational mining companies spread even more globally. BHP has an office in Canada now.

I don't think we can use the absence of a strategic or a partner as proof of lack of interest. By studying the history of massive buyouts and large partnerships, it is often YEARS before big companies get involved. Due diligence and derisking is their MO.

[EndZonefor7]

RM,    BHP Mt. Keith cut off grade is .4% and head grade of .5% so like CNC it's the scale of the project that keeps it going. Interesting they are building a solar energy project for the mine. Shows they are clearly in the green energy low carbon credit game.   Big partnerships can happen at any time, especially moreso in this new enviroment where strategic metals is

[Rm90090]

I lived in Australia for over 10 years and the level of sophistication of mining knowledge from the average investor is high there. There you see all types: high grade, low grade, open pit, underground. Also different business models.   As an investor, CNC is an opportunity I wouldn't have if I was living back in OZ with an Australian company. Trillions of dollars are going to be spent

[EndZonefor7]

Good points RM. I'm thinking there's some price suppresion of nickel going on too while iron ore prices are in the tank. With Russia out of the picture now that's 20% of the LME market. At some point they will lose control and it will pop back to $15 range IMO. Just a matter of when. 

[Rm90090]

I even wonder if we will see another nickel squeeze.

[EndZonefor7]

I'm beginning to think nickel will go up in tandem with copper which is predicted to have a big squeeze coming. Both hit their recent lows in mid July and bounced at same time. Nickel chopped a bit more.