Canada Nickel (TSXV:CNC) - Pioneering NA's Nickel Future with Innovative Financing and ESG Focus

Interview with Mark Selby, CEO of Canada Nickel
Our previous interview: www.cruxinvest...
Recording date: 10th September 2024
Canada Nickel Company is emerging as a significant player in the critical minerals sector, focusing on developing large-scale nickel projects in the Timmins district of Ontario. Led by CEO Mark Selby, the company is advancing its flagship Crawford nickel sulfide project while simultaneously exploring multiple targets across the region, aiming to establish what could become the world's largest nickel sulfide district.
The company's strategy is built on several key pillars. First, it focuses on large-scale resources, with the Crawford project poised to become one of the largest nickel sulfide operations in the Western world. Canada Nickel has also identified seven other exploration targets, planning to publish resources for six of them by mid-next year, showcasing the district-wide potential. Second, the company employs innovative financing, having secured significant funding without heavily diluting existing shareholders. This includes a $500 million USD letter of interest from Export Development Canada, $600 million in refundable tax credits from the Canadian government, and a $100 million commitment from Samsung SDI. The company plans to bring in a project partner for an additional $300-400 million, further de-risking the project. Third, Canada Nickel maintains a strong ESG focus, positioning itself to meet the growing demand for "clean, green" nickel from automakers and battery manufacturers. Its projects in Timmins offer the potential for environmentally responsible nickel production, aligning with stringent ESG criteria. Fourth, the company benefits from substantial government support, with its projects closely aligning with Canada's critical minerals strategy, resulting in significant financial incentives and potential for streamlined permitting processes. Finally, despite being a low-grade deposit, the company argues for the economic viability of its projects due to operational efficiencies, processing advantages, and existing infrastructure in the Timmins region.
Investors should note several key upcoming milestones for Canada Nickel. The company plans to publish six additional resources by mid-next year, significantly expanding its nickel inventory. Within the next year, Canada Nickel expects to receive key permits for the Crawford project, a crucial step towards development. The company is also working on finalizing its debt package and securing a project-level equity partner, which will further solidify its financial position. Perhaps most importantly, a potential final investment decision on Crawford is anticipated within the next 12-18 months, marking a pivotal moment in the company's progression from explorer to producer. These milestones collectively represent significant potential catalysts for the company's valuation and investor interest.
The investment thesis for Canada Nickel is underpinned by the growing global demand for nickel in electric vehicle batteries and energy storage systems. As major automakers and governments push for secure, responsible sources of critical minerals, Canada Nickel's projects in a stable jurisdiction like Canada could command a premium.
However, investors should also be aware of potential risks, including nickel market volatility, execution risks associated with developing multiple large-scale projects, and the reliance on effective implementation of processing technologies for low-grade ore.
Overall, Canada Nickel represents a unique opportunity in the critical minerals space, offering exposure to the rapidly growing EV and battery storage markets, backed by tangible assets and strong government support. As the company progresses towards production and continues to expand its resource base, it may attract increased attention from both institutional investors and strategic industry partners. For investors looking to capitalize on the clean energy transition and critical minerals boom, Canada Nickel warrants serious consideration.
View Canada Nickel's company profile: www.cruxinvest...
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[@georgeholloway3981]

I always really appreciate the emphasis on avoiding dilution. This is a CEO who knows his fiduciary duty!

[@jasonblundell6226]

Thank you gentlemen. Great interview again

[@MacGuyver85]

Always appreciated, thank you!

[@jamesbouchard3661]

So are those refundable tax credits guaranteed or was that supposed to be an "if we qualify" the gap is only 400m? Why wasn't there an announcement about qualifying for the 600m refundable tax credit if they are promised by the government?

[@georgeholloway3981]

I agree, that needs to be clarified.

[@JJD-g6f]

Agreed. Love Matt for all his follow up questions but this seems to be the biggest no brainer question "Mark - when will you know you have qualified for the $600M, where EXACTLY are you at in that process with the gov't and explain exactly how this will be able to be realized/monetized upfront to avoid dilution" and then don't let him off the hook until he answers. If it's not known when these credits will be confirmed... how the hell do they expect to have a financial package together by year-end with that key missing piece? Are they somehow going to have it all together and then just be waiting indefinitely for the government to confirm? And again, how are they monetizing this upfront to avoid dilution. Mark - if you want to know why the market isn't giving you credit for this... it's because you're not explaining how exactly it will come about and when. Why the unforced error? You're better than just about every junior mining CEO at repping the company, but you need to be clear on the answer if this is something that is coming soon. If it's not and it's completely uncertain how/when this credit will be achieved then the market will continue to not give you credit for this... which is very very bad as it's $600M vs your current market cap of ~$200M. Dude come on!

[@jasonwidegren3211]

My excitement levels for Canada Nickel are through the roof. So much de-risking and still such a low stock price. Time to look under the couch cushions for spare coins!

[@martynsmith6263]

Back at 0.99 cents the other day was a gift. I have been gearing up for a bull market for a while here..still am . Price Vs value potential , risk Vs reward. The biggest no brainer in mining... Still could fail so sizing appropriately

[@JJD-g6f]

Matt... when you next speak with Mark can you please ask WHEN the $600M will be confirmed and how it will be monetized? Is the government currently reviewing an application for that credit? Has CNC submitted it? When will a decision be made? By end of year? Mid-2025? When??????? Their market cap is $200M. This credit is $600M of free money. How can Mark not be shouting the timeline from the rooftops if there is indeed a timeline? If there's not one... how will they have a financial package together by end of year? How will they get the best deal possible on other equity required if this isn't confirmed first? Come on, let's get this MOST IMPORTANT question asked/answered thoroughly even if it takes 25 minutes to get all the details. Literally nothing more important for this project than this. Market cap should 2-3x if this was made clear/confirmed.

[@yannamare9435]

Crux marathon!

[@alligator_pie]

“Free money from the government” is not free, it comes from us Canadians. Is this $ from the Green Slush Fund I wonder.