FPX Nickel Corp. [FPX-TSXV; FPOCF-OTC] has received positive results from the 2020 preliminary economic assessment (PEA) for the Baptiste Project at its wholly-owned Decar nickel district 80 km north of Fort St. James, central British Columbia. The PEA was prepared in accordance with NI 43-101 standards by BBA Inc. of Montreal, Canada, with work on mine planning and tailings by Stantec Inc. of Vancouver, Canada.
Production and economic highlights
Mine life of 35 years and after-tax payback of 4.0 years;
After-tax net present value (NPV) (8%) of US$1.72-billion and internal rate of return (IRR) of 18.3%;
Average nickel production of 99 million pounds per year;
Average C1 operating costs of US$2.74 per pound nickel and all-in sustaining costs (AISC) of US$3.12 per lb nickel;
Average US$481-million of annual earnings before royalties, taxes and depreciation.
“This PEA establishes Baptiste as a premier large-scale nickel project,” commented FPX Nickel’s President and CEO, Martin Turenne. “The project has the potential to be a significant global nickel operation, with a multigenerational operating life and average annual production of 99 million pounds of contained nickel. Baptiste’s enormous scale, combined with low C1 operating costs of US$2.74 per lb, has the potential to deliver robust operating margins throughout the nickel price cycle, generating average earnings (before royalties, taxes and depreciation) of US$481-million per year and an after-tax NPV of US$1.7-billion. With its proximity to zero-carbon hydroelectric power, the fact that its nickel product can bypass smelters for direct sale to end-users, and the carbon-absorbing properties of Baptiste host rock, the project is well positioned to address the growing market demand for environmentally sustainable nickel production.”