Crawford Nickel Sulphide Project Feasibility Study: $2.80B NPV, 17.6% IRR
Canada Nickel Company Inc.'s Crawford Nickel Sulphide Project in Timmins, Ontario, Canada has a Feasibility Study outlining an after-tax NPV of $2.80B, an after-tax IRR of 17.6%, and initial capital of $2.00B. The mine plan runs 41 years at about 38 ktpa Ni per year.
Canada Nickel Company Inc.'s Crawford Nickel Sulphide Project has reported Feasibility Study results for the nickel project in Timmins, Ontario, Canada. The study headlines an after-tax net present value of $2.80B at a 8% discount rate. It reflects Canada Nickel Company Inc.'s (CNC.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $2.80B using a 8% discount rate. After-tax IRR is 17.6%. Initial capital expenditure is estimated at $2.00B. All-in sustaining costs are pegged at 1.54 USD/lb. Economics are based on $15,650/t nickel, $26,000/t cobalt, $878/oz palladium, $748/oz platinum, $211/t iron (equivalent to $58/t iron ore price) and $2,500/t chromium.
Production and mine plan. The project envisions an open pit operation. Life of mine is 41 years. Average annual production is approximately 38 ktpa Ni. Average head grade is 0.22 % Ni. Metallurgical recovery averages 41%. The open-pit strip ratio is 2.33.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Royalties to 4.1% of NSR.
These figures are extracted from Canada Nickel Company Inc.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 994 Mt | 0.24% Ni, 0.013% Co, 0.016 g/t Pd, 0.010 g/t Pt, 6.37% Fe, 0.59% Cr, 1.75% Brucite | 2,345 kt Ni, 125 kt Co, 498 koz Pd, 311 koz Pt, 63 Mt Fe, 5,892 kt Cr, 33 Mt CO2 |
| Probable | 721 Mt | 0.20% Ni, 0.012% Co, 0.012 g/t Pd, 0.009 g/t Pt, 6.53% Fe, 0.54% Cr, 1.41% Brucite | 1,444 kt Ni, 89 kt Co, 278 koz Pd, 208 koz Pt, 47 Mt Fe, 3,895 kt Cr, 22 Mt CO2 |
| Proven & Probable | 1,715 Mt | 0.22% Ni, 0.013% Co, 0.014 g/t Pd, 0.009 g/t Pt, 6.44% Fe, 0.57% Cr, 1.61% Brucite | 3,789 kt Ni, 215 kt Co, 777 koz Pd, 519 koz Pt, 110 Mt Fe, 9,787 kt Cr, 54 Mt CO2 |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 2.56 Bt | 0.24% Ni | 6.03 Mt Ni |
| Inferred | 1.69 Bt | 0.22% Ni | 3.73 Mt Ni |
Our Analysis
- IRR after-tax
- 17.6%
higher than 11% of 375 projects we track
- NPV after-tax
- $2.80B
higher than 88% of 535 projects we track
- Initial capex
- $2.00B
71% of NPV
costlier than 91% of 506 projects we track
- Mine life
- 41yrs
- Discount rate
- 8%
- Study price assumption
- $15,650/t nickel, $26,000/t cobalt, $878/oz palladium, $748/oz platinum, $211/t iron (equivalent to $58/t iron ore price) and $2,500/t chromium
A US$2.00B build against a US$213M market capitalisation is the fact that governs everything else here. The capex is roughly 9.4 times the company's entire equity value, and about 71% of the after-tax NPV. No micro-cap writes that cheque from the balance sheet. The realistic routes are a partner or offtaker carrying a large share of construction capital, streaming or royalty money sold forward, heavy debt against a feasibility-grade study, or equity issued at a deep discount to the current share price. Each of those transfers value away from today's holders, and the last one does so most brutally. That this is one of 18 projects the company tracks matters in both directions: it can lean on a diversified portfolio for credibility, but it also means this asset competes internally for scarce capital.
The economics themselves are respectable but not decisive. The US$2.80B after-tax NPV ranks above 88% of the 535 projects we track, which is a genuinely large number in absolute terms. The 17.6% after-tax IRR ranks above only 11% of the 375 projects we track, putting it in the bottom quartile. Against the practical hurdle, that return sits above the roughly 15% developers typically need for project finance but below the 20%-plus that a higher-risk junior with little else in the portfolio should be demanding. The 8% discount rate is a reporting convention, not a hurdle, and carries no signal either way.
The feasibility study is the strongest card: build-ready estimates in a plus or minus 15% band, a 41-year mine life, and Timmins, Ontario, which is about as mining-literate a jurisdiction as exists. The returns rest on the study's own price deck, including $15,650/t nickel, $26,000/t cobalt, $878/oz palladium, $748/oz platinum, $211/t iron and $2,500/t chromium, and a 41-year life exposes that deck to several cycles; treat the headline figures as a sensitivity to those assumptions rather than a fixed outcome. The question that decides this project is not the IRR. It is whether anyone will fund a US$2.00B build without diluting a US$213M company into irrelevance.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.