This stock gets talked down a lot which is think is totally unwarranted. The drill intercepts are good and the resource is a good one. Copper explorers with 120kt of copper in resources at 2% Cu grade are worth $100 million market cap. Eagle Mountain, Stavely, Peel Mining all examples of this.
Then CNR have 120kt of Ni in resource which is worth 3 times as much as 120kt of coppper, but trades at a crappy $26 million market cap.
Well 2% copper ore has an in ground value of A$260 per tonne of ore which is pretty marginal for underground mining and not certain to get mined.
2% Ni has an in ground value of A$780 per tonne of ore. That is very economic and certain to get mined. My rule of thumb is that >$500/t in ground value is making serious money when mined underground.
CNR have enough metal in ground to mine >2% grade for the first few years of mining and sustain healthy production for a >10 yr mine life. Recent hits at Sabre look like they will extend the runway to give greater than 10 year mine life at shallow depth and this is still only down to 300m depth. Most Nickel producers chase it down to 1000m or more. We could see another 120kt Ni from 300m to 600m below surface then another 120kt Ni below 600m.
CNR is looking like a bargain to me, which is why I just bought some more.
CNR Price at posting:
35.8¢ Sentiment: Buy Disclosure: Held
