Interview with Mark Selby, CEO of Canada Nickel (TSXV: CNC)
Our previous interview: https://youtu.be/5hS7udi1JYk
Recording date: 12th October 2023
Canada Nickel Company recently completed a feasibility study on its flagship Crawford nickel-cobalt sulfide project located in Ontario, Canada. We caught up with Mark Selby to discuss the FS and how the results demonstrate the potential for Crawford to become a large-scale, low-cost nickel mine.
Highlights from the feasibility study include:
- An after-tax net present value (NPV) of US$2.5 billion using an 8% discount rate. This increases to US$2.6 billion when factoring in expected carbon capture tax credits.
- An after-tax internal rate of return (IRR) of 17.1% that improves to 18.3% with carbon capture credits.
- Initial capital costs estimated at US$1.7 billion to support a 120,000 tonnes per day operation.
- A 41-year mine life with average annual production of 38,000 tonnes of nickel, 67,000 tonnes of chromium, 1.4 million tonnes of iron and 1.3 million tonnes of carbon captured.
- Life-of-mine C1 cash costs of US$0.39 per pound of nickel produced.
- Life-of-mine all-in sustaining costs estimated at US$1.54 per pound of nickel.
- Average annual EBITDA of US$811 million and free cash flow of US$546 million.
- The feasibility study confirms Crawford as one of the world's largest nickel reserves and resources. - The project is expected to benefit from carbon capture tax credits given its large-scale carbon sequestration plans.
Canada Nickel has also consolidated a district-scale land package around Crawford with over 20 nickel exploration targets identified. The potential exists to develop multiple large nickel mines in the Timmins region leveraging central infrastructure.
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