FPX Nickel is my biggest holding. I recently added to my position at .29c. My first buy was at .14c in 2018. My average is now at .31c. Reasons for liking this stock:
- Management: The CEO, Martin Turenne, is a friend and someone I trust. Of course, junior mining is a shitshow and this is a speculative play. Even good management can’t make a shitty asset work. Nevertheless, in a field where villainy is the norm, I feel that Martin stands out. I like that he keeps a tight rein on the company’s budget–the company does not issue warrants and placements are done at a premium to the share price. (Note: At 273M shares, the share count isn’t great, but this dilution occurred before Martin became CEO eight years ago.) Martin is also articulate and competent. Here’s the latest presentation from the Gold Messe in Germany:
Continuing with the list of why I like the stock…
- The mineralization: awaruite is a unique type of nickel that can be separated from hostrock through magnetic separation. This means they do not need smelting to extract the nickel, making the flow sheet much cleaner. This makes FPX a green alternative to even the nickel produced from sulphide producers in Canada. FPX has published a PFS and done extensive metallurgical work to prove that the awaruite from the Baptiste deposit can be used for stainless steel (the main market for nickel) and converted to nickel sulphate for the EV market.
- Significant Partnerships: Though there was/is a bit of hesitancy to the development of a new nickel type, major players in the space have done their due diligence on FPX and the result has been strategic investments. The strategic investors include:
- Outokumpu, the global leader in stainless steel, who now own 9.9% of FPX. If these guys know anything its nickel;
- Toyota & Panasonic, through the MOU signed with PPES;
- The Government of Japan, through FPX’s partnership with JOGMEC;
- The Government of Canada, which has provided grants for the project; and
- A mysterious strategic investor that owns another 9.9% that is yet unannounced.
I could write more but the above video says it better than I can. Feel free to leave a comment below.
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