Q: What are the pros and cons of this company?
5i Research Answer:
Pros would be the high speculative potential that CNC has. Nickel as a commodity is expected to be in a shortage over the mid to long term with minimal supply growth outside of China and Indonesia. Nickel's demand has been acclerating in recent years on usage in EV's. CNC's Crawford Project is one of the largest nickel sulphide resources located in a well-established mining camp with infrastructure with strong financial potential. CNC's balance sheet is also decent, by not being overly leveraged. Cons would be that it is small cap and pre-revenue making it inherently risky. CNC will also likely require mode capital down the line as it is burning through cash at this stage.