Highlights:

  • Cannon Resources’ Fisher East PEA forecasts US$379M (A$529M) Revenue over the first 11 years of operation.
  • The project is located 430km north of Kalgoorlie in WA’s Goldfields-Esperance region.
  • Mineral resource stands at 20.6Mt at 2.2 per cent nickel equivalent containing 444,300 tonnes of NiEq.
  • Annual production targets 23,800tpa nickel, 500tpa cobalt and 10,400 oz palladium.
  • Final Investment decision is targeted for 2029 with first nickel production in 2030.

Cannon Resources has released a preliminary economic assessment (PEA) for its Fisher East Nickel Project in Western Australia that supports a US$379 million (approximately A$529 million) Revenue forecast over the first 11 years of operation. The PEA marks an important early validation of the project’s economic case and supports the broader development pathway toward production by 2030.

The PEA is the first comprehensive economic assessment to incorporate the substantial resource expansion that has occurred since Kinterra Capital’s 2023 Acquisition of the asset. The work has been backed by significant Investment in drilling, engineering and metallurgical optimisation through 2024–2026.

Project location and resource scale

Fisher East lies 430 kilometres north of Kalgoorlie in Western Australia’s Goldfields-Esperance region. The project area provides exposure to a well-established Mining Jurisdiction with strong infrastructure, services availability and skilled labour access.

The mineral resource has expanded substantially since 2023. Cannon now reports a resource of 20.6 million tonnes at 2.2 per cent nickel equivalent (NiEq), containing 444,300 tonnes of nickel equivalent. The expansion represents a 175 per cent increase in tonnage and a 206 per cent increase in contained nickel since Kinterra’s Acquisition.

The substantial resource expansion is the foundation of the upgraded PEA Economics. By increasing both scale and grade through systematic exploration, Cannon has materially improved the project’s Revenue and Earnings potential.

Annual production profile

The PEA targets annual production of:

  • 23,800 tonnes of nickel.
  • 500 tonnes of cobalt.
  • 10,400 ounces of palladium.

The polymetallic profile is a defining feature of the project. While nickel is the primary economic driver, cobalt and palladium provide Credit Revenue that supports overall project Economics. Each Commodity is exposed to different industrial Demand drivers, providing Diversification within a single asset.

EBITDA contribution

Production of nickel, cobalt and palladium between the ninth and eleventh years could generate an average of more than US$275 million (A$384 million) of Earnings before interest, taxes, Depreciation and Amortisation (EBITDA). The figure reflects the optimised production phase once the operation has fully ramped from initial production.

EBITDA visibility at this scale is significant for an emerging Australian nickel project. It supports the case for project finance, strategic partnerships and continued Investment by Kinterra Capital and broader Stakeholders.

Why the timing matters

Cannon Resources is planning to make a final Investment decision in 2029 with first nickel production targeted for 2030. The timeline reflects the multi-year development pathway typical of nickel sulphide projects, including completion of feasibility studies, permitting, engineering, project finance and construction.

The 2029–2030 timing is also strategically interesting. Nickel Demand from EV battery manufacturers is projected to continue growing through the late 2020s and into the 2030s, particularly as larger EV battery formats and increased market penetration drive overall consumption. Western nickel Supply has been constrained, with significant Australian production loss through the 2023–2024 nickel price downturn.

EV battery Supply chain context

Fisher East’s positioning is supported by the broader EV battery Supply chain thematic. Kinterra Capital — the key project sponsor — has explicitly framed the project as supporting EV battery Supply chain development, particularly for Western markets seeking nickel sources outside Indonesia and other concentrated Supply jurisdictions.

The combination of substantial resource scale, polymetallic profile, Western Australian location and EV battery alignment positions Fisher East as one of the more interesting emerging Australian nickel sulphide projects.

Sector context: ASX nickel cohort

The ASX nickel cohort has experienced one of the most challenging periods in decades through 2023–2024, with multiple Australian nickel operations curtailed or closed entirely as nickel prices retreated from cyclical peaks. The 2025 and 2026 environment has stabilised somewhat, with reduced Supply, ongoing EV battery Demand growth and renewed Western policy focus supporting more constructive sector sentiment.

For investors, Fisher East provides exposure to a project with substantial scale and polymetallic Credit profile at a stage that targets first production into a potentially more supportive nickel pricing environment from 2030.

Permitting and development pathway

Beyond the PEA, the project will require:

  • Definitive feasibility study (DFS) work.
  • Environmental approvals and permitting.
  • Project finance arrangements.
  • Construction and commissioning.

Each phase carries its own execution risk and timing considerations. Cannon’s broader strategy depends on continued progression through each phase, with the 2029 FID and 2030 first nickel timing reflecting an optimistic but credible development pathway.

Sector context: WA nickel sulphide

Western Australian nickel sulphide deposits have been at the heart of Australia’s nickel industry for decades. The geology of the broader Goldfields and adjacent regions hosts multiple producing mines and a deep pipeline of development projects. Fisher East’s positioning within this established geological province provides geological context and infrastructure availability.

Market reaction and outlook

Cannon Resources is currently a private company under Kinterra Capital ownership, but the PEA has been a substantial market event for the broader ASX nickel sector. Investor attention has increasingly been on emerging WA nickel sulphide projects with credible Economics and Western Supply chain alignment.

Future newsflow for Fisher East includes DFS commencement, permitting progression, Partnership and offtake engagement, and Capital structure development as FID approaches.

Risks investors are weighing

Project Economics depend on long-term nickel, cobalt and palladium prices, with all three commodities subject to substantial cyclicality. EV battery Demand patterns continue to evolve, with chemistry shifts (LFP versus nickel-rich) affecting nickel intensity per battery.

Capital cost development and construction timing carry standard execution risks. Permitting, water access, environmental approvals and community engagement remain key considerations for WA development projects.

Market, Commodity or Investor Impact Section

The Fisher East PEA provides a defined economic foundation for one of the more substantial emerging WA nickel sulphide projects. Successful progression through DFS, permitting and FID would provide tangible additional Western Supply for the EV battery thematic. The project’s polymetallic Credit profile and resource scale support continued investor and offtake engagement. ASX-listed peers in WA nickel sulphide development would benefit from sector-wide validation of nickel project Economics.