Canada Nickel Increases NPV Of Crawford Project To $2.8 Billion
Canada Nickel (TSXV: CNC) has improved the net present value estimate for its Crawford Project following the completion of front end engineering and design for the proposed mine. The changes to the prior design focused on the resequencing of the mine plan to reduce pre-stripping that is required, as well as updating costs following the initial release of the feasibility study, which used costs from December 2022.
The net present value of Crawford has increased from $2.48 billion to $2.81 billion, while the IRR has improved by 50 basis points to 17.6%. The estimate is presented on an after-tax basis, using a discount rate of 8%. All other economic assumptions are unchanged since the initial feasibility study to enable comparability. The original feasibility study was based on a nickel price of $21,000 per tonne, or $9.53 per pound.
Following the additional engineering work, initial capital costs are expected to come in at $2.0 billion, which amounts to a $0.1 billion increase from prior estimates. Total capital costs have increased by $0.6 billion to $5.7 billion over the life of the project. Operating costs on a per tonne basis are estimated to have declined overall, falling from $10.88 to $10.60 per tonne.
The front end engineering design is said to have accounted for 30% of all engineering work required on the project, with engineering now at a point to enable preparation of long lead orders.
“With this milestone complete, we look forward to working with our project financing partners Scotiabank, Deutsche Bank, and Cutfield Freeman to complete the funding package for Crawford by year-end to be positioned to make a construction decision once permits are received. We are planning to utilize capital from this funding package for order placement of long-lead items and engineering activities,” commented Mark Selby, CEO of Canada Nickel.
Canada Nickel last traded at $0.88 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
