Canada Nickel announces after-tax NPV of $ 1.2 billion at $ 7.75 per pound of nickel for Crawford
Canada Nickel Company (TSXV: CNC) this morning finally released its long-awaited preliminary economic assessment for its flagship Crawford Nickel project in Ontario. The project would have an after-tax net present value of $ 1.2 billion at an 8% discount, representing an after-tax internal rate of return of $ 7.75 per pound of nickel.
The EEP presents a scenario for the development of an open pit mine, with a plant capable of processing 120,000 tonnes per day. Accordingly, the report describes the first quartile net cash cost of $ 1.09 per pound, and the total net sustaining cost 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 make full use of not only the nickel in the soil, but also the iron and chromium contained therein, which will bring the overall costs per pound to a lower level. Iron production is expected to be 860,000 tonnes per year, while chromium is 59,000 tonnes per year. Nickel production is comparatively 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 chromium, with prices based on “long-term price assumptions.” term”. Notably, the report is based on a nickel price of $ 7.75 per pound, although nickel is currently trading at $ 7.71 per pound, with an iron price of $ 290 per tonne (currently at 208.20 $) and a chrome price of $ 1.04 per pound.
The project must now move immediately to the feasibility stage, with a feasibility report expected to be released in mid-2022.
Canada Nickel last traded at $ 3.42 on the TSX Venture Exchange.
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