peer comparison

Interesting points to note:

- CNQ has the largest resource
- Second lowest C1 Cost after Wolf minerals
- Second lowest Capex (Significantly lower than Wolf)

But our market cap is only $15.7m vs $69.3m for Wolf. While CNQ is adopting a staged approach for its production ie. stockpile first before open cut mining, the difference in market cap does IMO show the potential upside for CNQ's share price.

Also, whilst the diagram above indicates that we do not have a DFS, that is no longer true as our technical due diligence was approved by Mitsubishi just a few days ago. Important to note though that the due diligence was only for the Hard Rock Stockpile. A pre-feasibility study was completed for the entire Mt Carbine Operation in 2013 and the results were positive.

It is also important IMO to bear in mine that Mt Carbine was once a fully operational open cut mine so its feasibility shouldn't be a major concern. In fact, with technological advancements like xray ore sorters and the inclusion of the tailings retreatment plant, the profitability of the 'new' hard rock operations should be much better.

Wolf are targeting production in 2015 and claim they will be the first to do so. However, if funding is received from Mitsubishi soon to enable construction to commence, CNQ won't be far behind IMO.