Investment Analysis Report Tartisan Nickel Corp. (CSE: TN, OTCQB: TTSRF, FSE: 8TA)
Report Highlights
- TN is up 19% since our previous report in May 2024, outperforming the Sprott Nickel Miners ETF, which is down 29% over the same period.
- Tartisan has started constructing an all-season road to its flagship Kenbridge nickel project in Ontario. Additionally, environmental baseline studies are ongoing, with plans to commence a pre-feasibility study by 2026.
- TN is up 19% since our previous report in May 2024, outperforming the Sprott Nickel Miners ETF, which is down 29% over the same period.
- Tartisan has started constructing an all-season road to its flagship Kenbridge nickel project in Ontario. Additionally, environmental baseline studies are ongoing, with plans to commence a pre-feasibility study by 2026.
- Kenbridge hosts high-grade open-pittable/underground resources totaling 146 Mlbs Ni, and 78 Mlbs copper. The property hosts class 1 nickel, essential for lithium-ion batteries in electric vehicles/EVs.
- Although EV metal prices have weakened due to slower EV sales growth, and rising supply, we maintain a positive long-term outlook on the EV sector. Battery and EV manufacturers, along with miners, are actively seeking stable and long-term supply sources of EV metals.
- A 2022 Preliminary Economic Assessment (PEA) on the Kenbridge project returned an After Tax-NPV5% of $109M, and an AT-IRR of 20%, using US$10/lb nickel vs the current spot price of US$7/lb. The project’s break-even nickel price is US$8/lb for a minimum 8% IRR.
- Nickel prices are down 11% YoY amid a higher supply surplus, and a stronger US$. With the market expected to stay in a supply surplus in 2025, we foresee nickel prices remaining soft in the near term. However, we anticipate long-term prices to range between US$8-US$10/lb, as most large undeveloped nickel projects cannot generate attractive economics if prices fall below US$8/lb.
- Although near-term EV prospects are impacted by Trump’s policy changes and reduced incentives, global EV sales growth forecasts remain robust (15-20% in 2025 vs. 25% in 2024). While Trump’s tariff threats create uncertainties, we anticipate demand for consolidating EV metal sources in North America to reduce reliance on China.
- TN is trading at $0.12/lb NiEq vs the sector average of $0.19/lb, a 40% discount.
- Upcoming catalysts include completion of the all-season road, resource upgrade/expansion drilling, and M&A prospects.
*This report and research coverage is paid for and commissioned by Tartisan Nickel Corp. – See the bottom of this report for other important disclosures rating, and risk definitions. All figures in C$ unless otherwise specified.
