The PEA, titled "Crawford Nickel Sulphide Project NI 43-101 Technical Report and Preliminary Economic Assessment" was independently prepared by
Highlights of the PEA
The PEA indicates a 25-year mine plan based on a phased 120,000 tonnes per day open pit mine and processing operation using conventional nickel sulphide concentrator, producing nickel concentrates and magnetite concentrate.
Over the 25-year mine life Crawford is expected to produce 842,000 tonnes of nickel, 21 million tonnes of iron and 1.5 million tonnes of chrome valued at
- After-tax,
$1.2 billion NPV8% and 16% IRR at long-term price assumptions (Note 1) - Large scale, low cost, long-life
- Significant iron and chrome by-products of 860,000 tonnes per annum and 59,000 tonnes per annum, respectively
- Life-of-mine net C1 cash cost of
$1.09 /lb and net AISC of$1.94 /lb on a by-product basis (1st quartile) (Notes 2 and 3) - Life-of-mine production of 25 years with 842,000 tonnes of nickel, 21 million tonnes of iron and 1.5 million tonnes of chrome valued at
$24 billion using long-term price assumptions (Note 1) - Significant earnings and free cash flow generation. Annual EBITDA of
$439 million and annual free cash flow of$274 million (Notes 1 and 3) - Minimization of carbon footprint through use of autonomous trolley trucks and electric shovels, which reduces diesel use by 40%. Optimization of the carbon sequestration potential of tailings and waste rock.
Notes and Assumptions
- All dollar figures are in
United States ("US") dollars. US metal prices used in the PEA were$7.75 /lb nickel,$1.04 /lb chromium, and$290 /tonne iron. A US dollar exchange rate of 0.75 was applied. - Source for 1st quartile costs –
Wood Mackenzie andS&P Capital IQ ; Priced as ofMay 20, 2021 . - C1 cash cost, AISC, EBITDA and cash flow data are non-IFRS measures. Refer to Non-IFRS measures.
- A full copy of the Technical Report and PEA, including material assumptions, notices and cautions, can be found on the Company's profile at www.sedar.com.
Considering the positive outcome of the PEA, the Company is advancing the
The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results of the PEA will be realized.
Qualified Person and Data Verification
About
Non-IFRS Measures
The Company has included certain non-IFRS measures in this press release. The Company believes that these measures provide investors an improved ability to evaluate the underlying performance of the project. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
Net C1 cash costs are the sum of operating costs (including all expenses related to stripping), net of by-product credits from chromium and iron ore per pound of payable nickel. Net AISC (all in sustaining costs) are C1 cash costs plus royalties plus sustaining capital per pound of payable nickel.
EBITDA is earnings before interest, taxes and depreciation, which comprise net smelter returns less royalties and operating costs and for the purpose of the economic analysis assume all stripping costs are expensed. Free cash flow represents operating cash flow less capital expenditures.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward looking information includes, but is not limited to, the results of Crawford's PEA, including statements relating to net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs, timing for permitting and environmental assessments, realization of mineral resource estimates, capital and operating cost estimates, project and life of mine estimates, ability to obtain permitting by the time targeted, size and ranking of project upon achieving production, economic return estimates, the timing and amount of estimated future production and capital, operating and exploration expenditures and potential upside and alternatives. Readers should not place undue reliance on forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of
Although
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