Investor Perception
As FPX Nickel strengthens its place within the essential metals house, buyers searching for publicity to the inexperienced vitality transition could discover FPX Nickel an intriguing prospect, given its potential to grow to be a low-cost, environmentally accountable nickel producer in a secure jurisdiction.
Overview
FPX Nickel (TSXV:FPX,OTXQB:FPOCF) is an exploration and growth firm targeted on its advanced-development-stage Tier 1 Baptiste undertaking within the Decar Nickel District in central British Columbia. The undertaking has the potential to produce high-concentration nickel and cobalt sulfates appropriate for the rising electrical car battery business, in addition to extra conventional markets for nickel, resembling chrome steel.
Nickel performs a significant position in electrical car (EV) and battery manufacturing, a sector that sees speedy enlargement 12 months after 12 months. Market analysis initiatives a rising nickel demand for EVs to achieve 1.3 million metric tonnes each year by 2030, as nickel content material in electrical autos will increase to over 40 kilograms per automotive battery.
Regardless of its important position in powering a worldwide shift to greener energies, analysts additionally undertaking an undersupply of nickel for the following a number of years as a result of lowering manufacturing and an absence of recent lively mines. Mining firms advancing high-margin nickel initiatives provide buyers publicity to a market with nice financial development and success potential.
FPX Nickel’s Baptiste undertaking leverages a 2023 preliminary feasibility examine( PFS) and an up to date mineral useful resource estimate that features whole nickel and potential by-product parts, cobalt and iron.
The PFS for Baptiste indicated an after-tax NPV of $2.01 billion and an IRR of 18.6 p.c at $8.75-pound nickel for a 29-year mine life producing a mean of 59,100 tonnes of nickel per 12 months.
The optimistic geological interpretation of the Van goal on the Decar Nickel District presents additional blue-sky potential for the Baptiste undertaking, doubtlessly mimicking the successes of its geographic neighbors in central British Columbia, resembling Artemis Gold’s C$1.8 billion Blackwater Gold open-pit undertaking.
The Baptiste undertaking presents FPX Nickel with the potential to produce nickel at a considerably decrease carbon footprint than different sources of manufacturing within the world nickel business. Current leach testing of awaruite nickel concentrates produced from Baptiste achieved nickel recoveries of 98.8 p.c to 99.5 p.c in producing a high-purity chemical answer containing 69.4 to 70.1 g/L nickel.
In line with FPX Nickel’s goal to construct a carbon-neutral mining operation on the Baptiste undertaking, the corporate co-founded a multi-university analysis program to review carbon seize and storage at mining websites. This system is in collaboration with Anglo-American majority-owned (LSE:AAL,OTCQX:AAUKF) DeBeers, and the Authorities of Canada.
Metallurgical testing carried out by FPX Nickel for the manufacturing of high-grade (> 65 p.c nickel) awaruite focus has included three campaigns with profitable pilot-scale take a look at work. This huge-scale pilot take a look at work validates the processing technique for Baptiste, leveraging awaruite’s ferromagnetism, excessive density, lively floor properties, and really excessive nickel content material.
Baptiste’s awaruite mineralization promotes a easy three-stage course of for the manufacturing of nickel sulphate from focus. It has the potential to be extra environment friendly than the standard five-stage course of required to transform sulphide and laterite ores into nickel sulphate. Fast nickel extraction of greater than 98 p.c in 60 minutes is achieved beneath gentle stress leaching circumstances with considerably decrease tools measurement/danger, energy consumption, stress and temperature necessities than typical high-pressure acid leach (HPAL) operations.
In January 2024, FPX Nickel closed a C$14.4 million strategic fairness funding from Sumitomo Metallic Mining. Internet proceeds of the personal placement will likely be used to fund exploration and growth actions at its Baptiste nickel undertaking, and proceed ongoing environmental baseline actions, feasibility examine readiness actions, and common company and administrative functions.
FPX Nickel’s partially-owned subsidiary CO2 Lock, specializing in carbon seize and storage (CCS) through everlasting mineralization, has accomplished a complete discipline program at its SAM web site in central British Columbia together with the first-ever profitable injection of CO2 right into a brucite-rich ultramafic mineral undertaking. This achievement marks a major milestone within the growth of CO2 Lock’s progressive in-situ CO2 mineralization know-how.
FPX Nickel’s administration group consists of extremely skilled capital markets and mining professionals, together with Canadian Mining Corridor of Fame member Dr. Peter Bradshaw, and veteran geologist Rob Pease.
Firm Highlights
- FPX Nickel is a Canadian useful resource firm targeted on exploring and creating its wholly owned advanced-development-stage Baptiste nickel undertaking within the Decar Nickel District, central British Columbia.
- The corporate favorably leverages low-cost operation and mining finest practices. It’s advancing one of many few main nickel deposits within the mining-friendly jurisdiction of British Columbia.
- The Baptiste property hosts high-tenor nickel mineralization with low impurities and little to no sulfides. The high-value nickel product has potential functions for direct feed to the chrome steel or the electrical car battery market, with excessive projected recoveries and low estimated working value.
- FPX Nickel operates a decent share construction consisting largely of administration (which holds 14 p.c of the corporate’s shares) and three giant company strategic buyers (which collectively maintain 30 p.c of the corporate).
- Baptiste presents an amazing alternative for decreasing the carbon footprint of nickel.
- Preliminary feasibility examine for Baptiste indicated an after-tax NPV of $2.01 billion and IRR of 18.6 p.c at $ 8.75-pound nickel for a 29-year mine life producing a mean of 59,100 tonnes per 12 months of nickel.
- In early 2024, FPX Nickel closed a C$14.4 million in personal placement financing from Sumitomo Metallic Mining Canada (SMCL), an entirely owned subsidiary of Sumitomo Metallic Mining (TSE:5713)
- The corporate has commenced the event of a standalone nickel sulphate refinery examine which will likely be accomplished within the first quarter of 2025.
Key Mission
Decar Nickel District – Baptiste Mission
The Decar Nickel District covers over 410 sq. kilometers and is 80 kilometers west of the Mt. Milligan mine, central British Columbia. The property hosts the extremely potential Baptiste nickel undertaking, which is likely one of the world’s largest development-stage nickel initiatives. The asset is accessible through logging and paved roads, with railway and hydropower close by.
Baptiste hosts nickel-iron alloy mineralization, with NI 43-101 compliant indicated assets at a mean grade of 0.123 p.c DTR nickel for two.3 million tons and 391 million tonnes of inferred assets with a mean grade of 0.115 p.c DTR nickel.
In September 2022, the corporate accomplished a 2,504-meter step-out drilling program at its Van goal, situated 6 km north of Baptiste within the Decar Nickel District. The finished holes stepped out aggressively from the preliminary discovery space, testing the potential for nickel mineralization as much as 1 kilometer west of the holes drilled in 2021.
Baptiste Mission 2023 PFS
In 2023, the corporate launched the preliminary feasibility examine outcomes for the Baptiste nickel undertaking indicating a mean manufacturing of 59,100 tons of nickel per 12 months in focus over a 29-year mine life. The undertaking will likely be developed in a phased strategy, with an preliminary mill throughput charge of 108,000 tons per day (Part 1), adopted by an enlargement to 162,000 tons per day (Part 2).
Consistent with the undertaking’s sturdy economics, FPX Nickel has commenced the event of a standalone nickel sulphate refinery examine which will likely be accomplished within the first quarter of 2025.
In 2023, FPX Nickel signed a non-binding memorandum of understanding with Japan Group for Metals and Vitality Safety (JOGMEC) and the Prime Planet Vitality & Options (PPES) three way partnership between Toyota Motor Firm and Panasonic, setting out a framework for FPX and PPES to discover collaborative alternatives for the vertical integration of nickel manufacturing on the Baptiste undertaking and the manufacturing of nickel sulphate and cathode lively supplies for the PPES provide chain.
In 2024, FPX Nickel accomplished pilot-scale hydrometallurgy refinery testwork and produced battery-grade nickel sulphate. This milestone marks the completion of the marketing campaign funded partly by a grant from Pure Sources Canada (NRCan) beneath the Authorities of Canada’s Essential Minerals Analysis, Improvement and Demonstration (CMRDD) program.
Administration Crew
Martin Turenne – President, CEO and Director
Martin Turenne is a senior government with over 15 years of expertise within the commodities business, together with over 5 years within the mining business. He has intensive management expertise in strategic administration, fundraising, financial evaluation, monetary reporting, regulatory compliance and company tax. Turenne previously served as CFO of First Level Minerals Corp. from 2012 to 2015 and in positions at KPMG LLP and Methanex Company. He’s a member of the Canadian Institute of Chartered Accountants.
Andrew Osterloh – Vice-president, Tasks
With greater than 20 years within the business, Andrew Osterloh is skilled in course of engineering, plant metallurgy and undertaking administration. He was previously the undertaking director and head of research for Fluor Canada, main feasibility examine work for big base metallic belongings. He was previously undertaking director and supervisor of research for Fluor Canada, the place he led feasibility research for a number of giant base metallic belongings within the Americas for Glencore, Freeport-McMoRan, Teck and Newmont. Osterloh is a member of the Affiliation of Skilled Engineers of British Columbia and holds a Bachelor of Utilized Science in mineral course of engineering from the College of British Columbia.
Felicia de la Paz – Chief Monetary Officer and Company Secretary
Felicia de la Paz began her skilled profession with KPMG LLP’s audit observe in Vancouver, culminating along with her position as a senior supervisor main giant groups within the execution of audit engagements for a wide range of giant and sophisticated organizations throughout a number of industries. After becoming a member of Equinox Gold as the company controller in 2017, she was a part of a core monetary management group overseeing company accounting, monetary reporting and system growth, managing the profitable integration of a number of new acquisitions throughout a number of jurisdictions, together with each working mines and large-scale growth initiatives. She acted because the vice-president of finance for Vida Carbon, a carbon royalty and streaming firm, and has extra lately been offering monetary and methods advisory providers to public firms within the mining sector. She is a chartered skilled accountant and holds a Bachelor of Commerce (Honours) from the College of British Columbia.
Dr. Peter M. D. Bradshaw – Chairman
Dr. Peter Bradshaw is a geologist with greater than 45 years of worldwide mineral exploration expertise in over 30 nations with Barringer Analysis, Placer Dome, and Orvana Minerals. He’s a member of the Canadian Mining Corridor of Fame. Bradshaw’s key discoveries and undertaking involvement embody Porgera Gold Mine, Papua New Guinea; Kidston Gold Mine, Queensland, Australia; Misima Gold Mine, Papua New Guinea; Huge Bell Gold Mine, Western Australia; Omai Gold Mine, Guyana; Decar Nickel Mission, British Columbia, Canada; director of Aquila Sources; co-founder and first chairman of the Mineral Deposit Analysis Unit, College of British Columbia.
Nigel Fisher – Director, Atmosphere
Nigel Fisher brings 20 years’ expertise main environmental assessments, allowing and administration methods, creating and executing on regulatory technique and advancing governance and funding agreements with Indigenous governments throughout British Columbia. He has held progressively senior roles with New Gold, Teck Sources, Woodfibre LNG, and most lately, Skeena Sources as director of atmosphere and regulatory affairs. In his prior roles, he efficiently obtained a number of regulatory approvals for large-scale useful resource initiatives whereas sustaining compliance with current and altering laws.
Jarett Lalonde – Director, Authorities and Public Affairs
Jarett Lalonde is a extremely regarded public affairs chief with over 20 years’ expertise within the pure assets, know-how and controlled merchandise sectors. In his most up-to-date position as world head of product coverage at Shopify, Lalonde was instrumental in crafting compelling public affairs narratives for the corporate’s various product choices, and spearheading engagement with coverage makers throughout North America and Europe. Earlier than becoming a member of Shopify, he labored with International Public Affairs, a number one authorities relations and strategic communications agency, the place he carried out advisory work for quite a few firms advancing large-scale pure useful resource initiatives in British Columbia and throughout Canada. Lalonde beforehand served as chief of employees to the Legal professional Basic & Minister of Justice for the province of British Columbia, and as coverage advisor to the Minister of Pure Sources Canada.
Rob Pease – Director
Rob Pease is a geologist with greater than 30 years of expertise in exploration, mine growth and development. He’s the previous CEO of Terrane Metals, acquired by Thompson Creek for C$650 million. Pease was additionally the previous director of Richfield Ventures, acquired by New Gold for C$500 million. He’s a director of Pure Gold Mining Inc. and Liberty Gold.
William H. Myckatyn – Director
William Myckatyn is a mining engineer with greater than 34 years of expertise within the mining business. Myckatyn is the founder and CEO of Quadra Mining Ltd. He served as chairman and subsequently co-chairman of Quadra FNX Mining till its takeover in 2012. Previous to this, Myckatyn was chairman, president and CEO of Dayton Mining., the place he led the restructuring and merger with Pacific Rim Mining. He was the previous president and CEO of Princeton Mining and Gibraltar Mines. For over 17 years, he labored for varied operations managed by Placer Dome and its related predecessor firms, together with 4 separate mines in Australia and the Philippines. He’s a director of San Marco Sources and OceanaGold.
Peter Marshall – Director
Peter Marshall is a mining engineer with 30 years of expertise in mine growth and development. Marshall was previously VP of undertaking growth at New Gold and SVP undertaking growth at Terrane Metals. He has intensive mine growth expertise in central British Columbia, together with finishing the Blackwater gold undertaking feasibility examine and growth, and early development of Mt. Milligan copper-gold mine, acquired by Thompson Creek for C$650 million in 2010.
James S. Gilbert, – Director
James Gilbert has greater than 30 years of funding and transaction execution expertise, with greater than 20 years targeted on the worldwide mining and metals business. Gilbert held senior administration positions with Rothschild, Gerald Metals Inc. and Minera S.A., a personal mining funding firm. His expertise covers mergers and acquisitions, debt and fairness financing, off-take and specialty refining agreements, three way partnership negotiations and strategic advertising and marketing. He was previously director of AQM Copper Inc., acquired by Teck Sources in 2016.
Anne Currie – Director
Anne Currie is a acknowledged chief within the allowing of main Canadian mining initiatives, with over 30 years of expertise within the personal and public sector, together with as a former senior accomplice with main world consultancy Environmental Sources Administration. She was British Columbia’s chief gold commissioner, the chief regulatory authority for the Mineral Tenure Act., and has an distinctive observe document in steering the environmental evaluation and allowing processes for main mining initiatives in British Columbia, together with for the KSM, Brucejack, Kemess Underground and Blackwater initiatives.
Kim Baird – Director
Kim Baird is an completed chief and strategic advisor working with indigenous communities, governments, companies and different organizations. In her prior position because the elected chief of the Tsawwassen First Nation, she negotiated and applied British Columbia’s first fashionable city treaty, establishing for the Tsawwassen Individuals possession and governance over their land and assets.
Dan Apai – Engineering Supervisor
Dan Apai has over twenty years of mining business expertise in civil engineering and engineering administration over a various vary of initiatives. In his earlier position as a principal civil engineer for Fluor Canada, he led the examine and detailed engineering works for quite a few large-scale mining initiatives for purchasers together with Teck, Newmont, BHP, First Quantum, Glencore, Josemaria Sources and Newcrest. Apai’s technical experience contains web site structure, earthworks, water administration, linear services (i.e., roads, powerlines, pipelines), and water provide methods – all parts that strongly affect the capital depth, permitability, and operability of mining initiatives. Apai is a member of the Affiliation of Skilled Engineers of British Columbia and holds a Bachelor of Engineering from the College of Western Australia.
Tim Bekhuys – SVP, Sustainability and Exterior Relations
Tim Bekhuys is a senior mining government with over 40 years’ expertise in group engagement, environmental evaluation and allowing. He was previously VP atmosphere, well being, security and sustainability for SSR Mining, the place he led all elements of sustainability reporting, environmental evaluation and allowing actions. He additionally beforehand acted as director of atmosphere and sustainability for New Gold, the place he efficiently led the federal government, allowing, Indigenous and group relations applications for the Blackwater undertaking in central B.C. Bekhuys was a former member of the boards of administrators of the Affiliation for Mineral Exploration British Columbia, the Mining Affiliation of British Columbia, and the Mining Affiliation of Canada.
Keith Patterson – Vice-president, Generative Exploration
Keith Patterson is a senior geologist with over 25 years’ expertise in greenfield exploration all through North America, South America, Europe and Asia. He was previously director of undertaking era and greenfield technique with Eldorado Gold the place he managed world exploration and undertaking era. Patterson acted as vice-president of exploration for Jinshan Gold Mines the place he was answerable for the execution of exploration applications and undertaking evaluations in China. He’s a registered skilled geoscientist with the Engineers and Geoscientists of British Columbia and holds a Grasp of Geological Sciences and a Bachelor of Geological Engineering, each from the College of British Columbia.
