FPX Nickel Corp.

0.1

Canada & British Columbia Vancouver

1155 West Pender Street, Suite 725

+1 604 681-8600

fpxnickel.com/

Looking to explore investment opportunities with FPX?

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Looking to explore investment opportunities with FPX?

Contact FPX >

People:

Who are the key individuals involved with the company and why should investors care? What's management's record? How much of the company do they own? Does the management team possess the requisite skill sets to conduct the process, efficiently solve key problems and answer key questions?

FPX Nickel is led by President & CEO, Martin Turenne, a CPA, CA with over 15 years' experience in the commodities industry. FPX Nickel's founder and Chairman is Peter Bradshaw, a geologist and member of the Canadian Mining Hall of Fame. Board members include two recent additions, Rob Pease and Peter Marshall, who led Terrane Metals in the development, construction and sale (for $650 million) of the Mt. Milligan copper-gold project, which is located 80 km away from FPX Nickel's flagship Decar Nickel District in central British Columbia. Our board also includes, Bill Myckatyn, who has built and operated several large-scale base metal mines in his career, most notably as the CEO of Quadra-FNX (acquired by KGHM for $3 billion in 2011).
Management and board members currently hold over 18% of the Company's issued and outstanding shares, and have been big accumulators of the stock in the market and financings over the past two years.

Property:

Why is it worth investing in your property?

We believe our 100%-owned Decar Nickel District, located in central British Columbia, is the best large, undeveloped nickel deposit in the world. Decar is a district-scale land package covering 245 sq km. with a well-defined major deposit (Baptiste) and several promising exploration targets with Baptiste-scale potential. The Baptiste deposit is one of the five largest undeveloped nickel deposits in the world, hosting NI 43-101 resources containing over 2.5 million tonnes nickel. The 2013 PEA places Baptiste as one of the world's top-15 nickel mines by annual output (approx. 82 million lbs per annum) over a 24-year mine life, positioned in the lowest-quartile of the cost curve with on-site cash costs ~US$2.60/lb nickel.

 

 

Financing:

Does the company have the money to move forward with key efforts and can the company easily acquire more money without hurting shareholders? What is the share structure? How is the liquidity?

We currently have approximately $600,000 in working capital, which is sufficient to fund our 2018 activities. Our last three equity financings have all been priced at or above our market price at the time of the financing, and none of the financings have included warrants. We have 133.7 million shares outstanding, and no warrants. Our liquidity is approximately 100,000 shares per day.

Catalysts:

What efforts are being made to get the company's story out to prospective investors? Any notable endorsements? Who else is saying this is a good deal? Who else is in the deal? What catalyst(s) are going to move the stock?

We have received very positive coverage from market commentators and newsletter writers including John Kaiser, Jayant Bhandari and Brian Leni (Junior Stock Review). The current backdrop for the nickel market is very strong, and the market is experiencing a structural supply deficit. We see significant upside in the nickel price going forward. In that context, given the limited number of nickel-focused companies in Canada (fewer than 10), we believe we standout as the best pure-play nickel story, with an advanced asset with world-class size and a low-cost profile in a safe and stable jurisdiction. Going forward, we will release an updated PEA that confirms our view that Decar is the most attractive undeveloped nickel deposit in the world, with a size that attracts interest from major mining companies.

Risks:

Are there political risks? Please explain the political risks, if any. What will happen to the stock if there is a major drop in the mineral? Is the company still economic with, for example, a 50% drop in the target commodity? What are the most prominent risks associated with investing in the company?

Political risks for this project would revolve around permitting a large-scale mining operation in British Columbia, which has a long history as one of the most mining-friendly jurisdictions in the world. In fact, in a 2017 ranking of safest places to invest resource capital, the Mining Journal rated British Columbia as the second-most attractive jurisdiction in the world, second only to Saskatchewan. As with most jurisdictions, there are some profound regional differences in the ability to develop mining projects in B.C.; in the case of our Decar nickel project, it's located in north-central British Columbia, which has several active mines and projects. For example, Decar sits just 80 km from Mt. Milligan, a similar-scale operation which was permitted and put into production in the last five years, demonstrating that north-central B.C. is an attractive setting for bulk-tonnage, open-pit mining operations like Decar.

Like every undeveloped nickel project in the world, Decar is sensitive to the nickel price. By way of context, the current nickel price is $6.25/lb and the 10-year low and high range is $3.60 to $14.00. We see very little risk of a significant drop in the nickel price in the coming years, as the market is in a structural deficit, and the nickel price is likely to remain well supported.

Exploration Timeline:

What is a high level schedule of exploration or development or other key business activities? What will the valuation range be if exploration does result in the discovery of a resource? Or, what will the valuation range be if key business milestones are reached? What are the milestones and timeline(s)?

We expect to issue an updated resource estimate on the Baptiste deposit in the first quarter of 2018. This resource estimate will feed into our ongoing internal trade-off studies, which seek to optimize the various components of the Baptiste mine plan. We can't speak to a valuation range going forward, but would point out that our share price peaked at $1.10 per share in 2011 when the Decar project was being rapidly advanced by our former joint venture partner and we owned only 49% of Decar. Our current share price is approximately 12 cents per share, and we own 100% of Decar. In a better nickel market, with continued advancement toward an updated PEA, we expect a potentially significant re-rating.

FPX news

FPX Nickel Initiates Metallurgical Study on Baptiste Deposit at Decar Nickel District

VANCOUVER, British Columbia, Sept. 17, 2018 (GLOBE NEWSWIRE) -- FPX Nickel Corp. (FPX-TSX.V) (“FPX Nickel” or the “Company”) is pleased to announce that it has commenced a metallurgical study on the Baptiste Deposit at its 100%-owned Decar Nickel District (the “...

FPX Nickel Announces Results of 2018 Annual General and Special Meeting

VANCOUVER, British Columbia, May 23, 2018 (GLOBE NEWSWIRE) -- FPX Nickel Corp. (TSX.V:FPX) (“FPX Nickel” or the “Company”) is pleased to announce the results of its 2018 Annual General and Special Meeting held earlier today.  At the meeting, the shareholders v...

FPX Nickel Files NI 43-101 Resource Update Technical Report for Baptiste Deposit at Decar Nickel District

VANCOUVER, British Columbia, April 12, 2018 (GLOBE NEWSWIRE) -- FPX Nickel Corp. (TSX.V:FPX) (“FPX” or the “Company”) is pleased to report that it has filed on SEDAR (www.sedar.com) the Independent National Instrument (“NI”) 43-101 technical report on...

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