”It’s Deal Time.” Giga Metals PFS: What Do Majors Want in a Project?

Junior Resource Investing

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Giga Metals has released the PFS for their Turnagain Ni-Co project in northern BC. As with the PEA, there is an interesting range of numbers that contribute to make Turnagain a unique project. Headline economics are only average: 11.4% post-tax IRR (7% discount). US$1.9B to build/$1.65B to sustain for a $574 NPV at $9.75/lb Ni. Payback not mentioned in the highlight package NR (full PFS to follow in the coming weeks). Mark is joined by lead project engineer Lyle Trytten to make the case as to why Turnagain is so much more than these numbers in terms of what it offers potential JV partners such as automakers or OEMs, and why Turnagain will become a mine.

00:40: PFS slide deck presentation on its highlights

27:00: Interview begins

27:45: Cost Improvements from PEA, Giga’s conservative approach, mine life, no inflation

36:45: Why the reduction in mine life

38:10: Discussion of changing discount rate – who was involved

42:20: Why are headline numbers weak, and what is/isn’t their significance to strategic investors

49:00: What’s the positive outcome for investors at play here if the economics are weaker

53:30: Quote from Mitsubishi on Giga from Turnagain and discussion of their role

55:55: What’s next for Giga

58:30: Who is interested in Giga right now?

59:55: Japanese Trade Mission Announcement Discussion and final thoughts

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