Count down to Cannon Resources IPO listing next Tuesday 10th.
CNR is a WA battery metals Ni-Cu-PGE IPO with a market cap of just $15m poised to take advantage of the EV clean energy boom. Unlike other IPOs that have projects but no resources Cannon holds 2 large highly prospective tenements and 2 JORC complaint resources in WA:
Fisher East WA JORC of 2.9 MT @ 1.7% Ni. It is straight forward to mine and could be brought into production very quickly to meet soaring Nickel demand. Potential to grow the JORC to over 100,000 t/ni high grade. Notes: Financially robust and technically low risk project · Pre-tax Net Cash Flow of ~A$146 million, NPV10 of ~A$79 million and an IRR of ~44% (Concentrator Case) at a US$7.50/lb nickel price, and a 0.75 AUD:US exchange rate · Pre-tax Net Cash Flow of ~A$102 million, NPV10 of ~A$58 million, and an IRR of ~55% (Toll Mill Case) assuming same nickel price and exchange rate · Straight forward mining and processing technologies Pre-production capital requirements of ~A$87.0 million (Concentrator Case) and ~A$48.0M (Toll Mill Case) · Option to Toll Mill at a nearby concentrator1 offers much reduced up-front capital · Life of mine sustaining capital of ~A$38 million (Concentrator Case) and ~A$37 million (Toll Mill Case) Strong upside to expand existing Mineral Resources • Scope to improve financial outcomes with additional mineable resources Competitive C1 cash operating costs · C1 cash cost of ~A$4.20/lb (US$3.15/lb) and All in Sustaining Cost (ASIC) of ~A$4.80/lb (US$3.60/lb) nickel in concentrate (Concentrator Case) · C1 cash cost of ~A$4.60/lb (US$3.45/lb) and ASIC of ~A$5.10/lb (US$3.80/lb) nickel in concentrate (Toll Mill Case) Production Details · Mine life of ~6 years · Optimum mining rate is ~500,000 tpa, which if achieved, and based on metallurgical recoveries of 88%, would result in recovery of ~7,300 tonnes of nickel per annum, and recovery of ~44,100 tonnes of nickel in concentrate over the life of mine over 6 years · Collurabbie 70km east of Fisher East Ni-Cu-PGE Project JORC resource of 573kt @ 1.63% Ni, 1.19% Cu, 0.08% Co, 1.49g/t Pd and 0.85g/t Pt over the Olympia deposit. This yields 9.17kt of contained Ni, 6.88kt Cu, 420t Co and 42.4koz Pt+P. This yields 9.17kt of contained Ni, 6.88kt Cu, 420t Co and 42.4koz Pt+Pd Widespread Ni-Cu-PGE mineralisation and drill targets over ~15km strike length on multiple stratigraphic horizons
CNR Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
