FPX Nickel (TSXV: FPX) has released the findings of an economic impact study for its flagship Baptiste Nickel Project, which is found in British Columbia. The study is highlighted by the potential to add $45.6 billion to total gross domestic product.
Among other highlights, the study found that the project will lead to total labour income of $17.5 billion, total direct, indirect, and induced tax revenues of $15.5 billion across the municipal, provincial and federal levels, and total employment of 208,000 job-years over the life of the project.
In terms of employment, the figure is said to equate to 1,100 direct and 3,400 indirect jobs that would be created per year from construction through to the end of operations. Regionally, this is expected to equate to 600 jobs in the Prince George region for over 32 years.
The study is based on a recently released pre-feasibility study, which models an operation that processes 108,000 tonnes per day under the first phase, at a capital cost of $2.9 billion. A phase two expansion, expected to occur in years eight and nine at a cost of $1.0 billion, is expected to expand that annual capacity to 162,000 tonnes per day.
READ: FPX Nickel Launches Scoping Study For BC-Based Nickel Sulphate Refinery
The pre-feasibility study meanwhile outlines an after-tax net present value (8% discount) of $2.01 billion, and an IRR of 18.6% for the Baptiste project, which is based on $8.75 per pound nickel and a 29 year life of mine.
“This Study clearly demonstrates the economic value of Baptiste to central B.C., the province, and Canada, positioning the Project as one with not just regional, but national significance for more than 30 years. [..] We believe the addition of Baptiste to the established mines operating in this region, including the Mt. Milligan Mine and the Blackwater Mine, will provide much-needed opportunities for local workers and businesses given the anticipated decline in regional forestry activity in the decades to come,” commented Martin Turenne, CEO of FPX Nickel.
FPX Nickel last traded at $0.235 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.
