Canada Nickel Reports After-Tax NPV Of $1.2 Billion At $7.75 Per Pound Nickel For Crawford

Canada Nickel Company (TSXV: CNC) this morning finally released its much-anticipated preliminary economic assessment for its flagship Crawford Nickel project in Ontario. The project reportedly has an after tax net present value of $1.2 billion at an 8% discount, representing an after-tax internal rate of return at $7.75 per pound of nickel.

The PEA outlines a scenario for an open pit mine to be developed, with a plant capable of processing 120,000 tonnes per day. The report as a result outlines first quartile net cash cost of $1.09 per pound, and net all in sustaining costs of $1.94 per pound of nickel. The result, is projected annual EBITDA of $439 million and annual free cash flow of $274 million.

Notably, the company expects to fully utilize not only the nickel in the ground, but the contained iron and chrome as well which brings overall costs per pound to a lower level. Iron production is expected to amount to 860,000 tonnes per annum, while chrome amounts to 59,000 tonnes per annum. Nickel production comparatively is estimated at 34,000 tonnes per year, with peak production estimated at 42,000 tonnes per year.

Over the life of the mine, 842,000 tonnes of nickel are expected to be produced, along with 21 million tonnes of iron and 1.5 million tonnes of chrome, with pricing based on “long term price assumptions.” Notably, the report is based on a nickel price of $7.75 per pound, despite nickel currently trading at $7.71 per pound, along with iron pricing of $290 a tonne (currently at $208.20), and chromium pricing of $1.04 per pound.

The project is now to immediately advance to the feasibility stage, with a feasibility report scheduled to be released in mid 2022.

Canada Nickel last traded at $3.42 on the TSX Venture.


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.

Video Articles

Mergers Set the Stage for Uranium’s Growth Cycle | Forum-Baselode Merger

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Recommended

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

Related News

Spruce Ridge: Examining The Sum Of The Parts

Spruce Ridge Resources (TSXV: SHL) as of late has been trading relatively flat, staying within...

Sunday, October 18, 2020, 01:53:00 PM

London Metal Exchange Halts Nickel Trading Again, Points To “IT System Error”

The London Metal Exchange saw itself caught in a bind again after it halted nickel...

Wednesday, March 16, 2022, 09:22:00 AM

Canada Nickel Consolidates Crawford Nickel Property

Canada Nickel Company (TSXV: CNC) this morning announced the consolidation of several of its properties...

Thursday, April 22, 2021, 07:32:53 AM

Canada Nickel Makes Second Regional Discovery In Timmins District

Results from the latest drill program conducted by Canada Nickel Corp (TSXV: CNC) are now...

Wednesday, August 17, 2022, 08:52:23 AM

Nickel Plummets 20% In First Five Months Of 2023

Nickel continues to be one of the most volatile commodities in the world. After soaring...

Tuesday, May 2, 2023, 06:17:00 AM