Interview with Mark Selby, CEO, Canada Nickel Corp (TSXV:CNC)

Our previous interview: https://youtu.be/98nx3HWEhDI

Recording date: 2nd December 2023

Canada Nickel Advancing District-Scale Nickel Opportunity
Canada Nickel has rapidly advanced the Crawford nickel-sulphide project towards production in recent years. Located in a leading mining jurisdiction of Timmins, Ontario, the project's sizable scale was confirmed by a 2023 feasibility study.

This feasibility study demonstrated robust economics for Crawford including an NPV of $2.5 billion and 18% IRR when accounting for monetizable carbon credits. With low projected operating costs in the bottom quartile for nickel sulphide producers, the initial 24-year mine life can potentially generate significant free cash flow through commodity price cycles. At $8.00 per pound nickel Crawford would produce mid-triple-digit annual EBITDA.

Importantly, Crawford represents only a starting point as Canada Nickel controls over 20 regional properties through one of the world’s largest prospective nickel sulphide districts. This extensive and underexplored land package provides substantial upside potential beyond the initial project.

The management team brings deep experience in mine development, project financing, and nickel markets. CEO Mark Selby recently described positive market feedback on Crawford’s feasibility study enabling “partnership discussions to propel forward”. The company appears well-positioned to finalize an off-take agreement with a downstream partner by the end of 2023.

Such a deal would demonstrate project merits and allow Canada Nickel to leverage partner relationships during the development phase. Off-take or joint venture agreements also offer potential funding avenues to minimize dilution, though the asset scale can support large traditional or streaming deals if required.

With a market cap of only $150 million, Canada Nickel trades at a fraction of Crawford’s fundamental value. As de-risking continues towards a 2025 production target, the current share price disconnect presents a compelling risk/reward entry point for exposure to a premier nickel sulphide development project. The additional regional exploration assets provide further optionality underpinning upside potential.
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