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Bullboard - Stock Discussion Forum Power Nickel Inc V.PNPN

Alternate Symbol(s):  PNPNF

Power Nickel Inc. is a junior exploration company. The Company is involved in exploring for nickel, copper, cobalt, PEG group metals, gold, and silver on its various properties located in Chile, and Canada (Quebec & British Columbia). It is focused on developing the high-grade Nisk project into Canada's first Carbon Neutral Nickel mine. It owns significant land packages in British Colombia and... see more

TSXV:PNPN - Post Discussion

Power Nickel Inc > Estimate by Grok
View:
Post by OptimistePhil on Dec 15, 2024 5:24pm

Estimate by Grok

 

 
To estimate the net value of 7 million tonnes (Mt) of ore at 1.3% nickel and 5 million tonnes at 7% copper after deducting operating costs and variable expenses, we need to proceed step by step:

1. Calculate the nickel and copper content:

  • Nickel:
    • Nickel content = 7 Mt × 0.013 = 91,000 tonnes of nickel.
  • Copper:
    • Copper content = 5 Mt × 0.07 = 350,000 tonnes of copper.

2. Evaluate the gross value of the metals:

  • Assuming an average nickel price of $16,000 per tonne (based on available data).
    • Gross value of nickel = 91,000 tonnes × $16,000/tonne = 1,456,000,000 USD (1.456 billion dollars).
  • Assuming an average copper price of $8,500 per tonne.
    • Gross value of copper = 350,000 tonnes × $8,500/tonne = 2,975,000,000 USD (2.975 billion dollars).

3. Total gross value:

  • Total gross value = 1,456,000,000 USD + 2,975,000,000 USD = 4,431,000,000 USD (4.431 billion dollars).

4. Deduct operating costs and variable expenses:

  • Operating costs and variable expenses can vary significantly from one mine to another. For a rough estimate, let's assume that costs represent about 50% of the gross value of the metals (which is a significant simplification, as actual costs can be more or less):
    • Costs and expenses = 4,431,000,000 USD × 0.5 = 2,215,500,000 USD (2.2155 billion dollars).

5. Net value after cost deduction:

  • Net value = Total gross value - Costs and expenses
  • Net value = 4,431,000,000 USD - 2,215,500,000 USD = 2,215,500,000 USD (2.2155 billion dollars).

This estimate is highly hypothetical because:

  • Nickel and copper prices fluctuate constantly, so the figures used here are averages based on recent data.
  • Operating costs and variable expenses can vary significantly depending on the mining project, location, technology used, environmental regulations, etc.
  • Factors like metal recovery efficiency, losses, and other operational expenses (such as capital costs, taxes, etc.) are not accounted for here.

Thus, the net value of 7 Mt of ore at 1.3% nickel and 5 Mt of ore at 7% copper after deducting operating costs and variable expenses could be approximately 2.2155 billion dollars, but this estimate should be taken with a lot of caution.
Here's the translation of the last response into English:

 
To estimate the net value of 7 million tonnes (Mt) of ore at 1.3% nickel and 5 million tonnes at 7% copper after deducting operating costs and variable expenses, we need to proceed step by step:

1. Calculate the nickel and copper content:

  • Nickel:
    • Nickel content = 7 Mt × 0.013 = 91,000 tonnes of nickel.
  • Copper:
    • Copper content = 5 Mt × 0.07 = 350,000 tonnes of copper.

2. Evaluate the gross value of the metals:

  • Assuming an average nickel price of $16,000 per tonne (based on available data).
    • Gross value of nickel = 91,000 tonnes × $16,000/tonne = 1,456,000,000 USD (1.456 billion dollars).
  • Assuming an average copper price of $8,500 per tonne.
    • Gross value of copper = 350,000 tonnes × $8,500/tonne = 2,975,000,000 USD (2.975 billion dollars).

3. Total gross value:

  • Total gross value = 1,456,000,000 USD + 2,975,000,000 USD = 4,431,000,000 USD (4.431 billion dollars).

4. Deduct operating costs and variable expenses:

  • Operating costs and variable expenses can vary significantly from one mine to another. For a rough estimate, let's assume that costs represent about 50% of the gross value of the metals (which is a significant simplification, as actual costs can be more or less):
    • Costs and expenses = 4,431,000,000 USD × 0.5 = 2,215,500,000 USD (2.2155 billion dollars).

5. Net value after cost deduction:

  • Net value = Total gross value - Costs and expenses
  • Net value = 4,431,000,000 USD - 2,215,500,000 USD = 2,215,500,000 USD (2.2155 billion dollars).

This estimate is highly hypothetical because:

  • Nickel and copper prices fluctuate constantly, so the figures used here are averages based on recent data.
  • Operating costs and variable expenses can vary significantly depending on the mining project, location, technology used, environmental regulations, etc.
  • Factors like metal recovery efficiency, losses, and other operational expenses (such as capital costs, taxes, etc.) are not accounted for here.

Thus, the net value of 7 Mt of ore at 1.3% nickel and 5 Mt of ore at 7% copper after deducting operating costs and variable expenses could be approximately 2.2155 billion dollars, but this estimate should be taken with a lot of caution.
Comment by Glueckszwerg on Dec 15, 2024 5:43pm
I like your approach. The costs to mine must be much lower though. There are many copper mines operating with grades of less than 1% and no credits from other metals. So a mine with a 6% grade should be super profitable. I would estimate our mining costs more in the range of 20% than 50% (of the value in the ground).
Comment by Margin321 on Dec 16, 2024 8:30am
Don't forget the PGM at Lion are rich, have value almost equal to the copper. And there is gold and silver too, less than PGMs but not insignificant.
Comment by Maxmoe on Dec 18, 2024 6:15am
What? No diamonds? Rare Earths? Kryptonite? Keep digging
Comment by Margin321 on Dec 20, 2024 8:08am
Top 20 > 5meter PGE intercepts since 2015. (parex database).   Average of one ton of Lion zone discovery holes has .48 gms/gold, 22 grams silver. 3.07% copper, 5.3 gms/pPd, 3.4 gms Pt, and .21% NI. An estimate of  value/ton is $688/ton.  That is about 7% CuEq. It is not clear how big it is, but the grade is beyond question. They have about  9 MT discovery so far -could ...more  
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