'The market doesn't appreciate the amount of nickel that's going to be required' - Canada Nickel
The run up in nickel is hugely supportive for Canada Nickel, said CEO Mark Selby.
In June Selby spoke to Kitco at the Mining Investment Event of the North in Quebec City.
Selby said Canada Nickel (CVE:CNC) is consolidating a substantial new nickel district in the Timmins mining camp – large scale, lower grade, open pit nickel sulphide projects. Canada Nickel completed a preliminary economic assessment in May on its Crawford project showing $1.2 billion after-tax
NPV of 8% and 16% after-tax IRR. A feasibility study is expected in Q4 this year.
In its investor presentation, the company notes that it is well funded with $51 million in financing.
With government stimulus directed at green energy projects during the pandemic, nickel prices got a lift in 2021. The metal is up 35% over the past year. Nickel is a key metal for lithium ion batteries.
"I don't think the market really appreciates is just the scale of the amount of nickel that's going to be required," said Selby who said demand could range anywhere from two- to four-times current supply to meet anticipated demand from electric vehicles.
"The good thing from the investor perspective prior to the run up: the metal was trading below $10 a pound. Now it's anywhere between $11 to $13 a pound. For us we used $7.75 long-term price for our project. So with nickel prices today, that's hugely supportive for our story going forward," said Selby.