Ni, Co, Cu, PGM, Au Properties in Ontario Canada
Producing Mines and "state-of-the-art" Mill
Message: A question for the board on First Nickel
Hi all, I posted this same question on our forum as well. It's all about Nickel folks and trying to get a feel for market valuations. As we all know, most of us have ridden the spiral following along with the price of Nickel. Many nickel producers and explorers are a mirrow image of each other in terms of trend and movement.....
I was looking around at First Nickel and after reading the summary page I was curious to see their share price. They traded today at about 42 cents on 240K. I have to wonder why, considering what they are doing??
"First Nickel is a Canadian mining, exploration and development company. Its current business is centered in the world-class Sudbury basin, where it has one mine in operation, a second project poised for development, and a pipeline of high quality exploration projects.
The Lockerby Mine was acquired from Falconbridge in 2005 and commenced production in 2006. The mine is expected to produce between 3.8 and 4.4 million pounds payable nickel and between 2.3 and 2.7 million pounds payable copper in 2008. First Nickel has successfully increased the indicated resources at its Lockerby Mine ten-fold since it was acquired in 2005. The expanded resource estimate is expected to justify new capital investment to improve the mine infrastructure including shaft-deepening and further development. Re-configuring the mine will lead to improved operating efficiencies, potentially increase output to 8 to 10 million pounds of nickel per year and extend the mine life by eight years or more.
Exploration activities continue at Lockerby and are focused on identifying and quantifying other resource opportunities in previously mined areas that have potential for immediate development and production, and investigating the previously untested potential for footwall mineralization.
First Nickel has received a feasibility study for the development of a mine at Premiere Ridge. The study concludes that the project has a Net Present Value ("NPV") of $14.3 million at a 10% discount assuming average metal prices of US$7.62 Ni, US$2.19 Cu and US$9.00 Co. Production rates are estimated to average 230,000 tpa over 5 years with maximum output of 291,000 tonnes in 2009. Capital requirements are estimated at $42.8 million.
First Nickel's exploration ventures include Morgan Lumsden, a greenfield exploration property in the Sudbury Basin managed by Xstrata Nickel Initial drilling has identified a new blind discovery of Nickel-Copper sulphide mineralization. Results to date have been very promising and an aggressive drilling program is ongoing."
The Lockerby Mine was acquired from Falconbridge in 2005 and commenced production in 2006. The mine is expected to produce between 3.8 and 4.4 million pounds payable nickel and between 2.3 and 2.7 million pounds payable copper in 2008. First Nickel has successfully increased the indicated resources at its Lockerby Mine ten-fold since it was acquired in 2005. The expanded resource estimate is expected to justify new capital investment to improve the mine infrastructure including shaft-deepening and further development. Re-configuring the mine will lead to improved operating efficiencies, potentially increase output to 8 to 10 million pounds of nickel per year and extend the mine life by eight years or more.
Exploration activities continue at Lockerby and are focused on identifying and quantifying other resource opportunities in previously mined areas that have potential for immediate development and production, and investigating the previously untested potential for footwall mineralization.
First Nickel has received a feasibility study for the development of a mine at Premiere Ridge. The study concludes that the project has a Net Present Value ("NPV") of $14.3 million at a 10% discount assuming average metal prices of US$7.62 Ni, US$2.19 Cu and US$9.00 Co. Production rates are estimated to average 230,000 tpa over 5 years with maximum output of 291,000 tonnes in 2009. Capital requirements are estimated at $42.8 million.
First Nickel's exploration ventures include Morgan Lumsden, a greenfield exploration property in the Sudbury Basin managed by Xstrata Nickel Initial drilling has identified a new blind discovery of Nickel-Copper sulphide mineralization. Results to date have been very promising and an aggressive drilling program is ongoing."
So I had a look at share structure.
| July 16, 2007 | ||||||||||||
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