has improved its in-process tailings (IPT) technology for capturing carbon during ore processing, which "may prove to be very valuable," reported Research Capital Corp. analyst Adam Schatzker in a June 8 research note.
"Overall, we think the process improvements for IPT coupled with the potential tax benefits are showing the potential for valuable carbon sequestration at Crawford," Schatzker wrote.
As such, Research Capital maintained its Speculative Buy rating and its CA$3.45 per share target price on the nickel-focused explorer.
Given its current share price is about CA$1.32, the implied possible return for investors is significant, at 161%.
Benefits of Using IPT
Schatzker presented some of the ways this proprietary technology could benefit its developer, Canada Nickel.
The Toronto, Ontario-based company has reduced the residence time required to sequester carbon using IPT to 6.5 hours from 12 to 24 hours. This significant change, noted Schatzker, "may result in material capital and operating cost savings."
By employing IPT at its Crawford project, Canada Nickel estimates it could sequester 1,000,000 tons of carbon per year, Schatzker relayed. The company also indicated using IPT at Crawford may qualify portions of project capex for carbon capture and storage refundable investment tax credits.
While it is too early to know what costs may or may meet the requirements, added Schatzker, "We think that there is a chance a material portion of the capital may be eligible for the refundable tax credit, which could further enhance the economics of the project."
Update on Feasibility Study
All that is left for Canada Nickel to do on the feasibility study of Crawford is to complete and integrate the IPT component into it, reported Schatzker. All other needed engineering work is done.
The release of this study, the next major catalyst for the company, is now expected in September 2023 versus Q2/23 previously. The slight delay is due to the Canada Nickel being unable to access, until summertime, the pilot scale testing facilities it needed to use for its IPT.
This delay, however, according to management, will not affect the Crawford timeline and schedule. The team still expects to receive permits for it by mid-2025.
|Want to be the first to know about interesting Base Metals investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.||Subscribe|
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
For additional disclosures, please click here.
Disclosures for Research Capital Corp., Canada Nickel Company Inc., June 8, 2023
Analyst Certification I, Adam Schatzker, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
Relevant Disclosures Applicable to Companies Under Coverage Relevant disclosures required under IIROC Rule 3400 applicable to companies under coverage discussed in this research report are available on our website at www.researchcapital.ca.
General Disclosures The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions.
Company Specific Disclosures
Within the past 12 months, Research Capital has provided investment banking services to the issuer.
Potential Conflicts of Interest All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.
RC USA INC. Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at www.researchcapital.com. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA).