ASX Nickel Stocks: 5 Biggest Companies in 2024

Market cap: AU$201.44 billion; share price: AU$40.25

BHP is a diversified mining company with headquarters in Melbourne, Australia. Worldwide, BHP runs dozens of mines that span North and South America and Australia. The company produces nickel sulphide ore out of its operations in Western Australia's Northern Goldfields area. It covers the mining, development and production of nickel until both matte and metal are ready to be shipped to buyers. BHP sells over 85 percent of its nickel to the electric vehicle (EV) industry.

BHP is on its way toward net-zero nickel production. In September 2022, its Nickel West division signed a deal with renewable energy company Enel Green Power to begin construction of the Flat Rocks wind farm in Western Australia. The project is set to include 18 wind turbines, and they will be the tallest wind turbines in Western Australia. As of October 2023, more than half of the wind turbines were already in place. The first stage of the wind farm is expected to provide enough energy to power BHP's Kalgoorlie nickel smelter and Kambalda concentrator once complete.

In the operational review for its 2024 fiscal year, which ended on June 30, BHP reported production of 81,600 tonnes of nickel during the period, a 2 percent increase compared to its 2023 fiscal year.

This came in at the middle range of its 2024 guidance, which was set at 77,000 to 87,000 tonnes. In the report, BHP also notes that it will be temporarily suspending nickel production starting in October due to low prices, but will continue to invest in the site to enable a restart and support. It will review the decision by February 2027.

Market cap: AU$3.77 billion; share price: AU$5.03

IGO is a diversified miner that produces several different metals, but its focus is on its 100 percent owned Nova nickel-copper-cobalt operation. Nova is located in Western Australia's Fraser Range and primarily produces nickel. IGO's other nickel production operation is Forrestania, located 400 kilometres east of Perth.

The company's results for its fourth fiscal quarter of 2024 show that nickel production from Nova came in slightly below guidance at 20,806 tonnes, despite a recovery in both grade and mill performance. Forrestania put out 7,571 tonnes, marginally above guidance, although continued seismic activity challenged ore availability.

IGO also has a 49 percent stake in the Tianqi Lithium Energy Australia joint venture with Tianqi Lithium (SZSE:002466,HKEX:9696). The joint venture has 51 percent ownership of Greenbushes, Australia's largest lithium mine.

Market cap: AU$3.54 billion; current share price: AU$0.825

New South Wales-based Nickel Industries, formerly Nickel Mines, is a significant producer of nickel pig iron, a critical component in manufacturing stainless steel. The company began producing high-grade nickel matte for EVs in 2022.

Nickel Industries has 80 percent interests in multiple nickel rotary kiln electric furnace (RKEF) operations in Indonesia: Hengjaya Nickel; Oracle Nickel and Ranger Nickel in the Morowali Industrial Park; and Angel Nickel in the Weda Bay Industrial Park. It also has an 80 percent interest in the Hengjaya nickel mine near the Morowali Industrial Park.

In the company's 2023 annual report, it reported that its operations set a nickel production record of 131,126 tonnes. This included contained nickel in the 834,192 tonnes of nickel pig iron it produced with an average grade of 12.9 percent nickel, along with additional low-grade matte production of 119,822 tonnes grading 17.1 percent.

In its June quarterly report, the company reported that it had brought its interest in the Excelsior nickel-cobalt project up to 44 percent, an increase of 30.25 percent. The project is currently under construction and is expected to commissioned ahead of October 2025. So far in 2024, production levels have been down slightly from 2023, attributed to higher-than-average seasonal rainfall, which "impacted levels of nickel ore sold into the IMIP."

Market cap: AU$156.3 million; share price: AU$0.345

Centaurus Metals is a mining and development company based in Brazil. According to the company, its goal is to become a major supplier of nickel sulphide to help provide a cleaner and greener future. The firm has its sights set on the development of its wholly owned Jaguar nickel-copper-cobalt project, which is located in Brazil's Carajás mineral province.

On July 2, the company released a feasibility study for Jaguar forecasting an after-tax net present value of AU$997 million with an internal rate of return of 31 percent and payback period of 2.7 years from first production.

Jaguar's measured and indicated reserves stand at 737,800 tonnes of nickel from 86.6 million tonnes of ore with an average grade of 0.85 percent nickel, while its inferred resources come in at 211,000 tonnes from 22.6 million tonnes of ore grading 0.93 percent nickel. Maiden proven and probable open-pit ore reserves for the project are estimated at 459,200 tonnes of nickel from 63 million tonnes grading 0.73 percent nickel.

The company estimates annual production of 18,700 tonnes of nickel with an initial life of mine of 18 years.

Market cap: AU$93.85 million; share price: AU$0.46

Ardea Resources is developing its wholly owned Kalgoorlie nickel-cobalt project in Western Australia, which includes the Goongarrie Hub deposit. The company has said the project “hosts the largest nickel-cobalt resource in the developed world.” Ardea is currently working toward a planned definitive feasibility study (DFS).

A 2023 prefeasibility study for Goongarrie Hub shows an ore reserve of 194.1 million tonnes at 0.7 percent nickel and 0.05 percent cobalt, resulting in 1.36 million tonnes of contained nickel and 99,000 tonnes of contained cobalt. The study indicates an open-pit operation with a 40 year life and annual output of 30,000 tonnes of nickel and 2,000 tonnes of cobalt.

In July 2023, the company signed a memorandum of understanding to develop Goongarrie Hub with a Japanese consortium consisting of Sumitomo Metal Mining (TSE:5713), Mitsubishi (TSE:8058) and Mitsui (TSE:8031). On February 29, Ardea shared that it has agreed with the consortium on a DFS budget and the scopes of work for the study.

The company announced on August 14 that it had been notified that the consortium had obtained approval from the Australian Foreign Investment Review Board for its investment; it also obtained merger control clearance from the Korea Fair Trade Commission. Ardea also provided an update on DFS progress in the announcement.