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Channel Sampling at Renforth's Victoria West Delivers Consistent Surface Nickel Mineralization Combined with Copper Enrichment
Renforth Resources Inc. (CNSX:RFR.CN) (OTC:RFHRF) (FSE:9RR) (“Renforth” or the “Company”) is pleased to share the consistent results of channel sampling across the ~275m stripped surface area of the ~5km Victoria West nickel/copper mineralized system within Renforth’s wholly owned ~30,000 hectare Surimeau District Property in NW Quebec. The channel samples demonstrate consistent elevated nickel and cobalt values, along with elevated copper and zinc values. In several locations the two mineralization types “mix”, the highlight of this “mixing” is a 12.9m section of Channel 49 which overall assays 0.121% Ni and 0.013% Co, including 0.224% Ni over 1m, which also includes 5.5m of 0.43% Cu and 1.63% Zn, within which 0.8m assays 2.05% Cu.
Mineralized Channel Sample Highlights
In addition to the channels cut there were several grab samples taken at the beginning of the program as stripping started but before channels could be cut. Grab samples are selected by the geologists and not representative of the whole of the mineralized system, highlights are presented below.
Grab Sample Assay Highlights
Victoria West Channel Map
The channel sampling, carried out after stripping overburden which varied between 0 and 3m in depth, has revealed consistent nickel/cobalt mineralization, similar to what has been seen in the near surface drilling to date, however, it has also resulted in a greater proportion of copper/zinc intersections than seen in drilling. Exploration continues on this >5km polymetallic system, located within a 20km magnetic anomaly, where Renforth has only drilled 5,626m.
“I am happy to deliver results to shareholders which demonstrate that our discovery of a polymetallic, nickel/cobalt and copper/zinc, mineralized system at Victoria West, stretching over >5km and hiding in plain sight, is a surface system. This gives Victoria West another advantage, in addition to numerous road access options and hydro-electric power, we are dealing with easily, and cost effectively, accessed mineralization. For Renforth the multiple metals present, the location and the jurisdiction of this discovery mean we can consider grades which, while they may appear low when compared to other projects around the world and under deeper cover, are in fact very interesting to us. In addition, Surimeau is located approximately 70km from Glencore’s Horne Smelter in Rouyn-Noranda, Canada’s only copper smelter which also engages in recycling of strategic and precious metals, shipping anode to their Montreal refinery, also Canada’s own copper/nickel refinery. If Renforth is fortunate to have an asset in Victoria West which is proven, in the future, to warrant being mined the solution is sitting within an hour from our doorstep. To be clear, Victoria West is not a mine yet, and we do not know if it will be. But we look forward to aggressively pursuing the answer to that question” states Nicole Brewster, President and CEO of Renforth.
Renforth’s Annual General meeting was held, the voting recommendations were passed.
At year end Renforth closed an additional $200,000 in flow through funding, a second close to the previously announced financing. Each Flow-Through Unit was priced at $0.10 and consists of one common share in the capital of the Company issued on a ‘flow-through’ basis, and one-half of one common share purchase warrant. Each whole warrant issued with the Flow Through Unit, entitles the holder to purchase one common share in the capital of the Company at a price of $0.13 for a period of 12 months following closing. All securities issued under the Offering are subject to a four-month statutory hold period in Canada.
Technical disclosure in this press release has been reviewed and approved by Francis R. Newton P.Geo (OGQ#2129), a “qualified person” pursuant to NI 43-101.
For further information please contact:
Renforth Resources Inc.
Nicole Brewster
President and Chief Executive Officer
C:416-818-1393
E: nicole@renforthresources.com
#Unit 1B – 955 Brock Road, Pickering ON L1W 2X9
Follow Renforth on Facebook, LinkedIn and Instagram!
About Renforth
Renforth wholly owns the ~260 km2 Surimeau District Property, which hosts numerous areas of polymetallic and gold mineralization, each with various levels of exploration, as well as a significant amount of unexplored ground. Victoria West has been drilled over a strike length of 2.2km, within a 5km long mineralized structure, proving nickel, copper, zinc and cobalt mineralization, in the western end of a 20km magnetic anomaly. The Huston target, during initial reconnaissance, resulted in a grab sample grading 1.9% Ni, 1.38% Cu, 1170 ppm Co and 4 g/t Ag. In addition to this the Lalonde, Surimeau and Colonie Targets are all polymetallic mineralized occurrences which, along with various gold showings, comprise the areas of potential of this NSR free property.
In addition to the Surimeau District battery metals property Renforth wholly owns the Parbec Gold deposit, a surface gold deposit contiguous to the Canadian Malartic Mine property in Malartic, Quebec. In 2020/21 Renforth completed 15,569m of drilling which successfully twinned certain historic holes, filled in gaps in the resource model with newly discovered gold mineralization and extended mineralization deeper. Based upon the success of this significant drill program the Company considers the spring 2020 MRE, with a resource estimate of 104,000 indicated ounces of gold at a grade of 1.78 g/t Au and 177,000 inferred ounces of gold at a grade of 1.78 g/t Au to be out of date. With the new data gained Renforth will undertake to complete the first ever structural study of the mineralization at Parbec, as well as additional total metallic assay work in order to better contextualize the nugget effect on the gold mineralization.
Renforth also holds the Malartic West property, the site of a copper/silver discovery, and Nixon-Bartleman, west of Timmins Ontario, with gold present on surface over a strike length of ~500m.
No securities regulatory authority has approved or disapproved of the contents of this news release.
Forward Looking Statements
This news release contains forward-looking statements and information under applicable securities laws. All statements, other than statements of historical fact, are forward looking. Forward-looking statements are frequently identified by such words as ‘may’, ‘will’, ‘plan’, ‘expect’, ‘believe’, ‘anticipate’, ‘estimate’, ‘intend’ and similar words referring to future events and results. Such statements and information are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the risks of obtaining necessary approvals, licenses and permits and the availability of financing, as described in more detail in the Company’s securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and the reader is cautioned against placing undue reliance thereon. Forward-looking information speaks only as of the date on which it is provided and the Company assumes no obligation to revise or update these forward-looking statements except as required by applicable law.
Australian Ambassador to Vietnam Visits Blackstone’s Projects
Blackstone Minerals Limited (ASX: BSX) (“Blackstone” or the “Company”) is pleased to announce that His Excellency, Mr Andrew Goledzinowski, Australian Ambassador to Vietnam visited Son La Province and met with Son La Provincial Peoples Committee and toured the Company’s mining and refining projects (“Ta Khoa Project”) in Northern Vietnam to highlight the key role the Ta Khoa project plays in the global transition to net zero.
Blackstone was invited to join the official meeting between the Ambassador and the Chairman of the Son La Provincial Peoples Committee (“Son La PPC”), Hoang Quoc Khanh in which the two discussed the current status of the Ta Khoa Project and the importance to both countries to develop this globally significant project. Both the Ambassador and the Chairman confirmed that the Australian Government and the Son La PPC are very supportive of the project.
Figure 1: His Excellency, Mr Andrew Goledzinowski, Australian Ambassador to Vietnam formally meets Chairman of the Son La Provincial Peoples Committee, Hoang Quoc Khanh
The Ambassador, accompanied by Son La PPC, Vice Chairman, Dang Ngoc Hau visited the Ban Phuc Nickel Mine (“BPNM”) with the first official duty to open the Blackstone Mining Information Centre. The Company together with the Son La PPC agreed that more effort was needed to promote the benefits of mining and to show case Australia’s high standard mining practices’ that are applied to the Ta Khoa Project. The Company intends to operate mine site tours for all stakeholders to promote the benefits of mining, show case high environmental standards and educate on the Ta Khoa Project.
Figure 2: Opening of the Blackstone Information Centre
The Ambassador then undertook a site visit of the Ban Phuc Nickel Mine, inspecting;
- the impressive core shed, the store for over 130,000 metres of core,
- the lower portal and existing BPNM concentrator, and
- the pilot plant facility which undertook the metallurgical testwork for the definitive feasibility study (“DFS”).
Figure 3: Site visit of the Ban Phuc Nickel Mine
The visit was concluded with a boat trip from BPNM in Bac Yen District to the Ta Khoa Refinery location in Phu Yen District. The Company was able to highlight to the Ambassador and the Son La PPC representatives the huge benefit of using the Da River for managing logistics. Barging is not only a lower cost transportation method, it also enables a lower carbon footprint and most importantly it eliminates the interaction with the community which has been deemed a high risk activity.
Click here for the full ASX Release
This article includes content from Blackstone Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Nickel Investor Report
2024 Nickel Outlook Report
Five times the amount of nickel will be needed to meet global demand by 2050. Don't miss out on investing in a metal that is crucial to the EV revolution!
The Investing News Network spoke with analysts, market watchers and insiders to get the scoop on the trends and stocks that you need to watch to stay ahead of the markets in 2024.
✓ Trends | ✓ Forecasts | ✓ Top Stocks |
Table of Contents:
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A Sneak Peek At What The Insiders Are Saying
“Global nickel consumption is expected to increase due to recovery of the stainless steel sector and increased usage of nickel in EV batteries. Batteries now account for almost 17 percent of total nickel demand, behind stainless steel."
— Ewa Manthey, ING
"While LME nickel prices are expected to find support from a weaker US dollar in 2024 as the Federal Reserve eases monetary policy, we expect prices to remain subdued as further primary nickel output growth from Indonesia and China keeps the market in a surplus for the third consecutive year."
— Jason Sappor, S&P Global Commodity Insights.
Who We Are
The Investing News Network is a growing network of authoritative publications delivering independent, unbiased news and education for investors. We deliver knowledgeable, carefully curated coverage of a variety of markets including gold, cannabis, biotech and many others. This means you read nothing but the best from the entire world of investing advice, and never have to waste your valuable time doing hours, days or weeks of research yourself.
At the same time, not a single word of the content we choose for you is paid for by any company or investment advisor: We choose our content based solely on its informational and educational value to you, the investor.
So if you are looking for a way to diversify your portfolio amidst political and financial instability, this is the place to start. Right now.
Nickel and the Battery Boom in 2024
Table of Contents
Nickel Price 2023 Year-End Review
Nickel Price Forecast: Top Trends That Will Impact Nickel in 2024
Nickel Price 2023 Year-End Review
Nickel soared to its highest price ever in 2022, breaking through US$100,000 per metric ton (MT).
2023 was a different story. As governments worked to combat inflation and investors faced considerable uncertainty, commodities saw a great deal of volatility. Nickel was no exception, especially in the first half of the year.
Ultimately the base metal couldn't hold onto 2022's momentum and has spent the last 12 months trending downward. Read on to learn what trends impacted the nickel sector in 2023, moving supply, demand and pricing.
How did nickel perform in 2023?
Nickel price from January 2, 2023, to December 29, 2023.
Chart via Trading Economics.
Nickel opened 2023 at US$31,238.53 on January 2, riding on the back of momentum that started in Q4 2022, and flirted with the US$31,000 mark again on January 30. As January closed, the metal began to retreat, and by March 22 nickel had reached a quarterly low of US$22,499.53. It made slight gains in April and May, but spent the rest of the year in decline, reaching a yearly low of US$15,843 on November 26. In the final month of the year, the nickel price largely fluctuated between US$16,000 and US$17,000 before closing the year at US$16,375, much lower than where it started.
Despite nickel's return to normal price levels, 2022's rise to more than US$100,000 made more headlines this past year. The substantial increase came after a short squeeze, and the London Metal Exchange (LME) was criticized by some market participants for halting trading and canceling US$12 billion in contracts.
In June 2023, Jane Street Global Trading and hedge fund Elliott Associates filed a lawsuit for US$472 million in compensation for the canceled trades, stating that the LME acted unlawfully. However, judgment came down in favor of the LME on November 29. Elliott Associates has been granted permission to appeal the decision, which it intends to do.
Indonesian supply growth weighs on nickel price
At the end of 2022, analysts were predicting that nickel would enter oversupply territory due to increased production, primarily from Indonesia and China. Speaking to the Investing News Network (INN) at the time, Ewa Manthy of ING commented, "We believe rising output in Indonesia will pressure nickel prices next year."
This prediction came true — production surpluses continued to be a theme in 2023, weighing on prices.
Indonesia continued its aggressive increase in nickel production, more than doubling the 771,000 MT it produced in 2020. A forecast from an Indonesian government official in early December indicates the country is on track to reach production in the 1.65 million to 1.75 million MT range, further adding to a growing supply glut.
In an email to INN, Jason Sappor of S&P Global Commodity Insights said nickel was the worst-performing metal in 2023 due to expanding supply. “We consequently expect the global primary nickel market surplus to expand to 221,000 MT in 2023. This would be the largest global primary nickel market surplus in 10 years, according to our estimates,” he said.
The reason for Indonesia's higher output in recent years is that the country has been working to gain greater value through the production chain, and in 2020 strictly regulated export of raw nickel ore. This decision forced refining and smelting initiatives in the country to ramp up rapidly and brought in foreign investment.
In H2, Indonesia's attempts to combat illegal mining led to delays in its mining output quota application system. While the country originally said it would begin to process applications again in 2024, lack of supply forced steel producers to purchase nickel ore from the Philippines to meet demand, and Indonesia ultimately issued temporary quotas for Q4.
Nickel demand hampered by weak Chinese recovery
Supply is only part of the problem for nickel. Coming into 2023, Manthy suggested demand would be impacted by China’s zero-COVID policy, which had been affecting the country's real estate sector. “China’s relaxation of its COVID policy would have a significant effect on the steel market, and by extension on the nickel market,” she said.
This idea was echoed by analysts at FocusEconomics, who noted, “The resilience of the Chinese economy and the country’s handling of new COVID-19 outbreaks are key factors to watch.”
While China ended its zero-COVID policy in December 2022, the year that followed was less than ideal for the country, with sharp declines in real estate sales and two major developers seeing continued troubles. In August, China Evergrande Group (HKEX:3333) filed for bankruptcy in the US, and at the end of October, Country Garden Holdings (OTC Pink:CTRYF,HKEX:2007) defaulted on its debt. Because the Chinese real estate sector is a major driver of steel demand, this has had a dramatic impact on nickel and is one of the primary causes for its price retreat.
There have also been wider implications for the Chinese economy. Deflation has been triggered in the country as its outsized property sector implodes, with downstream effects for the more than 50 million people employed in the construction industry. Some, including the International Monetary Fund and Japanese officials, have compared the situation in China to Japan in the 1990s, when that country’s housing bubble burst and created economic turmoil.
With uncertainty rife, China’s central bank still isn’t ready to begin cuts on its key five year loan prime interest rate, but it has been working to improve market liquidity to stimulate real estate sector growth. In aid of that, it cut the reserve requirement ratio by 25 basis points twice in 2023, lowering the amount of cash reserves banks have to keep on hand.
So far, these stimulus efforts haven’t had much effect on the real estate market, and its continued struggles have ensured that commodities attached to the sector, including nickel, are still trading at depressed prices. China has vowed to continue to work on its fiscal policy by removing purchasing restrictions on home buying and providing better access to funding for real estate developers.
EVs not boosting nickel price just yet
Nickel is one of many metals that has been labeled as critical to the transition to a low-carbon future. It’s essential as a cathode in the production of electric vehicle (EV) batteries, and when INN spoke to Rodney Hooper of RK Equity at the end of 2022, he noted that people were initially quite conservative on their estimates of EV sales.
However, that's now begun to change. “That’s all turned on its head now. EVs represent a big percentage of nickel demand, and they will continue to rise going forward," Hooper explained at the time.
While the EV outlook remains bright, the sector hasn’t grown fast enough to make up for declining steel sector demand for nickel. And with limited charging infrastructure, range concerns and the effects of higher-for-longer interest rates, EV sales slowed in 2023. The slowdown is welcome news for battery makers as it will allow them time to build out factories and further develop technology, but it’s not good for investors and producers of nickel looking for pricing gains.
Investor takeaway
2023 wasn’t a great year for nickel. It faced increasing supply against lowered demand from both the Chinese real estate sector and slower EV sales. The rebound in the Chinese economy that was hoped for after COVID-19 restrictions were removed never occurred, and instead it has regressed further, pushing into deflationary territory.
Nickel investors may feel a little stung at the close of the year, especially as uncertainty in the market persists.
Don’t forget to follow us @INN_Resource for real-time news updates.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Nickel Price Forecast: Top Trends That Will Impact Nickel in 2024
Nickel started 2023 high after a rally at the end of 2022, but supply and demand pressures saw the base metal's price decline throughout the year to close nearly 50 percent lower at US$16,375 per metric ton (MT).
Production has increased rapidly in recent years, and oversupply played a big role in nickel's 2023 price dynamics. Indonesia in particular has ramped up its output and now accounts for more than 50 percent of global nickel supply.
Excess supply was compounded by weak demand out of China, which has continued to struggle since ending its zero-COVID policy in January. China's central bank is now working to stimulate the economy to prevent runaway deflation.
What does 2024 have in store for nickel? The Investing News Network (INN) spoke to experts about what could happen to the metal in the next year in terms of supply, demand and price. Read on to learn their thoughts.
Experts call for another nickel surplus in 2024
Nickel is coming into the year with a holdover surplus from 2023. This glut has mainly come from an increase in Class 2, lower-purity nickel produced in Indonesia, but it's also been driven by an increase in the production of Class 1, higher-purity product from China. The former category, which includes nickel pig iron and ferronickel, is used in products such as steel, while the latter is necessary to create nickel sulfate and nickel cathodes for electric vehicles (EVs).
Against that backdrop of higher supply, both nickel products have also faced decreased demand.
The resulting oversupply concerns have been reflected in core metals markets, and Ewa Manthey, commodities strategist at ING, told INN that nickel has the largest short position of the six London Metal Exchange (LME) base metals.
“This buildup is making nickel vulnerable to violent price spikes should inventors unwind their short positions,” she said. This type of situation occurred in 2022, when the nickel price catapulted rapidly to over US$100,000 before the exchange canceled billions of dollars in trades and suspended nickel trading. The LME’s approach to the situation has been criticized, but was recently ruled lawful by London’s High Court of Justice.
The International Nickel Study Group (INSG), an intergovernmental body consisting of government and industry representatives, met in October to discuss the current state and outlook for the nickel market.
At the time, the group forecast that surplus conditions would continue into 2024, with oversupply reaching 239,000 MT on the back of increases in nickel pig iron output from Indonesia. Meanwhile, decreases in nickel pig iron production from China are expected to be offset by increases in nickel cathode and nickel sulfate production.
Even though the INSG expects demand to grow from 3.195 million MT in 2023 to 3.474 million MT in 2024, production is still anticipated to be higher, rising from from 3.417 million MT in 2023 to 3.713 million MT in 2024.
Chinese recovery needed to buoy nickel price
At the outset of 2023, experts thought Chinese demand for nickel would increase as the country ended its strict zero-COVID policy. China's construction industry is a key consumer of nickel, which is used to make stainless steel.
However, the recovery was slower than predicted, and demand from the real estate sector never materialized.
“China’s flagging recovery following COVID lockdowns has hurt the country’s construction sector and has weighed on demand for nickel this year,” Manthey explained to INN.
While the lack of recovery in China’s real estate sector negatively impacted nickel demand and pricing through 2023, according to Fitch Ratings’ China Property Developers Outlook 2024, the country has been targeting construction and development policy in higher-tier cities and injecting liquidity in the market. This has largely been a balancing act as it tries to stem deflation in its market and battles with inflation globally.
If China's efforts to provide real estate sector support are successful that could be a boon for the nickel price. But as 2024 begins, more economists are forecasting a continued downtrend in the Chinese economy.
Even so, the INSG's October forecast indicated that demand for stainless steel was set to grow in the second half of 2023, and the group was calling for further growth in 2024.
EV demand for nickel rising slowly but surely
While the Chinese real estate market is a key factor in nickel demand, it's not the only one.
The expanding EV sector is also a growing purchaser of nickel. “Global nickel consumption is expected to increase due to recovery of the stainless steel sector and increased usage of nickel in EV batteries,” Manthey said. “Batteries now account for almost 17 percent of total nickel demand, behind stainless steel.”
As a cathode material in EV batteries, nickel has become a critical component in the transition away from fossil fuels, which the expert anticipates will help its price in the future.
“The metal’s appeal to investors as a key green metal will support higher prices in the longer term,” she said.
While demand for battery-grade nickel is predicted to grow over the next few years as the metal is used in the prolific nickel-manganese-cobalt (NMC) cathodes, manufacturers and scientists have been working to find alternatives that don’t rely on nickel and cobalt due to environmental and human rights concerns, as well as the high costs of these cathodes.
Lithium-iron-phosphate (LFP) batteries have become a contender in recent years, growing in popularity in Asia and seeing uptake from major EV producers like Tesla (NASDAQ:TSLA), owing to their longer lifespans and lower production costs. However, because of their lower range, LFP batteries have low demand in regions such as North America, where the ability to drive long distances is an important factor in purchase decisions.
This means that for now, NMC batteries will remain an essential part of the EV landscape.
EV demand has also declined recently as the industry faces headwinds that have soured consumer interest, including charging infrastructure shortfalls, inconsistent supply chains and elevated interest rates. These factors are already starting to have an impact, with Ford (NYSE:F) and GM (NYSE:GM), among others, cutting production forecasts for 2024.
What will happen to the nickel price in 2024?
Following its near 50 percent drop in 2023, the nickel price is expected to be rangebound for most of 2024.
“While LME nickel prices are expected to find support from a weaker US dollar in 2024 as the Fed eases monetary policy, we expect prices to remain subdued next year as further primary nickel output growth from Indonesia and China keeps the market in a surplus for the third consecutive year,” said Jason Sappor of S&P Global Commodity Insights.
Manthey agreed that the price is likely to stay flat. “We see prices averaging US$16,600 in Q1, with prices gradually moving up to average US$17,000. We forecast an average of US$16,813 in 2024,” she said. Manthey also noted that nickel is set to remain elevated compared to average levels before the short squeeze in March 2022.
Sappor suggested that the nickel surplus and the metal's rangebound price may prompt producers to reduce their output. “Nickel prices have sunk deeper into the global production cost curve, raising the possibility that the market could be hit by price-supportive mine supply curtailments,” he said.
At this time there is no indication that producers will ease production next year, and Vale (NYSE:VALE), one of the world’s top nickel miners, is expecting its Indonesian subsidiary to produce slightly more versus 2023.
Investor takeaway
Much like the rest of the mining industry, nickel is being affected by broad macroeconomic forces in the post-COVID era. Higher interest rates are stymying investment across the mining industry, while also lowering demand for big-ticket items like real estate and cars, which help to drive demand for metals.
For nickel, this means another year of oversupply. A potential rebound in the Chinese real estate market and increased demand from upfront tax credits for EVs could shift its trajectory, but the headwinds in 2024 look to be strong.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Blackstone Minerals, Falcon Gold and FPX Nickel are clients of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Additional information on Nickel stocks investing — FREETop 5 Canadian Nickel Stocks of 2024
Nickel has been trending down since early 2023, and bearish sentiment still pervades the market in 2024. Supply is expected to outflank demand over the short term, but the longer-term outlook for the metal is strong.
The Investing News Network (INN) spoke to analysts to get their thoughts on the biggest nickel trends to watch for in 2024, and what they think will affect the market moving forward. They discussed factors such as oversupply, weaker-than-expected demand from China and doubts about the London Metal Exchange after it suspended trading last year.
Demand from the electric vehicle industry is one reason nickel's future looks bright further into the future.
“Global nickel consumption is expected to increase due to recovery of the stainless steel sector and increased usage of nickel in electric vehicle batteries. Batteries now account for almost 17 percent of total nickel demand, behind stainless steel," Ewa Manthey, commodities strategist at financial services firm ING, told INN in the lead-up to 2024. “The metal’s appeal to investors as a key green metal will support higher prices in the longer term."
Below INN has listed the top nickel stocks on the TSX, TSXV and CSE by share price performance so far this year. All year-to-date and share price data was obtained on February 22, 2024, using TradingView’s stock screener. The top nickel stocks listed had market caps above C$10 million at that time.
1. EV Nickel (TSXV:EVNI)
Year-to-date gain: 96.67 percent; market cap: C$53.03 million; current share price: C$0.59
EV Nickel’s primary project is the 30,000 hectare Shaw Dome asset in Ontario. It includes the high-grade W4 deposit, which has a resource of 2 million metric tons at 0.98 percent nickel for 43.3 million pounds of Class 1 nickel across the measured, indicated and inferred categories. Shaw Dome also holds the large-scale CarLang A zone, which has a resource of 1 billion metric tons at 0.24 percent nickel for 5.3 billion pounds of Class 1 nickel across indicated and inferred categories.
EV Nickel is also working on integrating carbon capture and storage technology for large-scale clean nickel production, with majority funding from the Canadian government and Ontario's provincial government. In late 2023, the company announced it was moving its carbon capture research and development to the pilot plant stage.
The Canadian nickel exploration company's share price started off the year at C$0.30 before steadily climbing to reach a year-to-date high of C$0.69 on February 12.
2. Fathom Nickel (CSE:FNI)
Year-to-date gain: 34.78 percent; market cap: C$19.53 million; current share price: C$0.115
Exploration-stage Fathom Nickel says its mission is to target magmatic nickel sulfide discoveries to support the global electric vehicle market. The company’s Saskatchewan-focused portfolio includes the Albert Lake project, which holds nickel, copper and platinum-group metals (PGMs), and the Gochager Lake nickel-copper project. The 90,000 hectare Albert Lake project hosts the historic and past-producing Rottenstone deposit.
Fathom kicked off its winter exploration program at Albert Lake during the first week of February. According to the company, the first hole will target a "very strong, very prominent conductor dominating the northeastern section of the figure." Fathom will also aim to further test and potentially find the source of a multi-element soil geochemical anomaly at the Tremblay-Olson claims area. It plans to complete five to seven drill holes to that end.
The company’s share price has moved from C$0.12 at the start of the year to a year-to-date high of C$0.21.
3. Sama Resources (TSXV:SME)
Year-to-date gain: 20 percent; market cap: C$25.31 million; current share price: C$0.12
Sama Resources’ focus is on the Samapleu nickel-copper-PGMs project in Côte d’Ivoire, West Africa, which includes the Samapleu and Grata deposits. Samapleu is a joint venture between Sama (70 percent) and Ivanhoe Electric (30 percent); Ivanhoe Electric has the option to purchase up to a 60 percent interest in the project.
In the first few weeks of the year, Sama has already dropped a few press releases. The company shared highlights from its ongoing 3,800 meter winter drilling program at the Yepleu prospect. Importantly, the work has confirmed that newly discovered nickel-copper-PGMs mineralization measures 500 by 400 meters, is near surface and open in all directions. Drill results from the program so far include drill hole S-349, which intersected 53 meters of combined mineralization layers grading 0.29 percent nickel, including 2.6 meters at 1.31 percent nickel and 0.95 percent copper.
Sama’s share price started off the year at C$0.11 before jumping to a year-to-date high of C$0.14 on February 12.
4. FPX Nickel (TSXV:FPX)
Year-to-date gain: 13.33 percent; market cap: C$93.15 million; current share price: C$0.34
FPX Nickel is developing its flagship development-stage Baptiste nickel project in the Decar Nickel District of BC. The property is host to four targets, including the Baptiste deposit and the Van target, the former of which is the company’s primary target. The company is targeting both the stainless steel and battery-grade nickel markets.
FPX Nickel is currently conducting environmental baseline activities, and preparing for a feasibility study at Baptiste. In late January, the company announced a C$14.4 million strategic investment from Sumitomo Metal Mining Canada, which is a wholly owned subsidiary of Sumitomo Metal Mining (TSE:5713).
Through CO2 Lock, its majority owned subsidiary, FPX Nickel is pursuing carbon capture and storage technology as a means of lowering the carbon footprint associated with mining battery metals. In late February, CO2 Lock completed the first-ever successful injection of CO2 into a brucite-rich ultramafic mineral project as a part of a comprehensive field program taking place at its SAM site in Central BC. “This achievement marks a significant milestone in the development of CO2 Lock's innovative in-situ CO 2 mineralization technology,” states a press release.
Shares moved from a year-to-date low of C$0.27 in mid-January to a year-to-date high of C$0.40 on February 5.
5. Canada Nickel (TSXV:CNC)
Year-to-date gain: 11.2 percent; market cap: C$240.57 million; current share price: C$1.39
Canada Nickel Company has honed its efforts on its wholly owned flagship Crawford nickel sulfide project in Ontario’s productive Timmins Mining Camp. A bankable feasibility study demonstrates a large-scale nickel deposit with a mine life of 41 years, an after-tax net present value of US$2.5 billion and an internal rate of return of 17.1 percent. The company has said it is targeting both the electric vehicle and stainless steel markets.
A few big-name companies hold significant ownership positions in Canada Nickel, including Agnico Eagle Mines (TSX:AEM,NYSE:AEM), which holds an 11 percent stake, and Anglo American (LSE:AAL,OTCQX:AAUKF), which has a 7.6 percent stake. In February of this year, battery and electronic materials manufacturer Samsung SDI (KRX:006400) made an equity investment of US$18.5 million for an 8.7 percent ownership stake in the company.
Canada Nickel’s share price was trading at C$1.14 before jumping to a year-to-date high of C$2.24 on January 16.
In early February, the company shared that its wholly owned subsidiary, NetZero Metals, is planning to develop a nickel-processing facility and stainless steel and alloy production facility in the Timmins Nickel District. Canada Nickel’s share price had slid to C$1.35 on February 5 before rising up to C$1.46 on February 9 following the news.
Later in the month, Canada Nickel shared successful results from initial infill drilling at its 100 percent owned Bannockburn property, and announced a new discovery at the Mann property. Mann is a joint venture with Noble Mineral Exploration (TSXV:NOB,OTCQB:NLPXF) in which Canada Nickel can earn an 80 percent interest.
FAQs for nickel investing
How to invest in nickel?
There are a variety of ways to invest in nickel, but stocks and exchange-traded products are the most common. Nickel-focused companies can be found globally on various exchanges, and through the use of a broker or a service such as an app, investors can purchase companies and products that match their investing outlook.
Before buying a nickel stock, potential investors should take time to research the companies they’re considering; they should also decide how many shares will be purchased, and what price they are willing to pay. With many options on the market, it's critical to complete due diligence before making any investment decisions.
Nickel stocks like those mentioned above could be a good option for investors interested in the space. Experienced investors can also look at nickel futures.
What is nickel used for?
Nickel has a variety of applications. Its main use is an alloy material for products such as stainless steel, and it is also used for plating metals to reduce corrosion. It is used in coins as well, such as the 5 cent nickel in the US and Canada; the US nickel is made up of 25 percent nickel and 75 percent copper, while Canada's nickel has nickel plating that makes up 2 percent of its composition.
Nickel's up-and-coming use is in electric vehicles as a component of certain lithium-ion battery compositions, and it has gotten extra attention because of that purpose.
Where is nickel mined?
The world's top nickel-producing countries are primarily in Asia: Indonesia, the Philippines and New Caledonia make up the top three. Rounding out the top five are Russia and Canada. Indonesia's production stands far ahead of the rest of the pack, with 2023 output of 1.8 million MT compared to the Philippines' 400,000 MT and New Caledonia's 230,000 MT.
Significant nickel miners include Norilsk Nickel (OTC Pink:NILSY,MCX:GMKN), Nickel Asia, BHP Group (NYSE:BHP,ASX:BHP,LSE:BHP) and Glencore (LSE:GLEN,OTC Pink:GLCNF).
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Canada Nickel, FPX Nickel and Noble Mineral Exploration are clients of the Investing News Network. This article is not paid-for content.
Top 5 Canadian Nickel Stocks of 2024
Nickel has been trending down since early 2023, and bearish sentiment still pervades the market in 2024. Supply is expected to outflank demand over the short term, but the longer-term outlook for the metal is strong.
The Investing News Network (INN) spoke to analysts to get their thoughts on the biggest nickel trends to watch for in 2024, and what they think will affect the market moving forward. They discussed factors such as oversupply, weaker-than-expected demand from China and doubts about the London Metal Exchange after it suspended trading last year.
Demand from the electric vehicle industry is one reason nickel's future looks bright further into the future.
“Global nickel consumption is expected to increase due to recovery of the stainless steel sector and increased usage of nickel in electric vehicle batteries. Batteries now account for almost 17 percent of total nickel demand, behind stainless steel," Ewa Manthey, commodities strategist at financial services firm ING, told INN in the lead-up to 2024. “The metal’s appeal to investors as a key green metal will support higher prices in the longer term."
Below INN has listed the top nickel stocks on the TSX, TSXV and CSE by share price performance so far this year. All year-to-date and share price data was obtained on February 22, 2024, using TradingView’s stock screener. The top nickel stocks listed had market caps above C$10 million at that time.
1. EV Nickel (TSXV:EVNI)
Year-to-date gain: 96.67 percent; market cap: C$53.03 million; current share price: C$0.59
EV Nickel’s primary project is the 30,000 hectare Shaw Dome asset in Ontario. It includes the high-grade W4 deposit, which has a resource of 2 million metric tons at 0.98 percent nickel for 43.3 million pounds of Class 1 nickel across the measured, indicated and inferred categories. Shaw Dome also holds the large-scale CarLang A zone, which has a resource of 1 billion metric tons at 0.24 percent nickel for 5.3 billion pounds of Class 1 nickel across indicated and inferred categories.
EV Nickel is also working on integrating carbon capture and storage technology for large-scale clean nickel production, with majority funding from the Canadian government and Ontario's provincial government. In late 2023, the company announced it was moving its carbon capture research and development to the pilot plant stage.
The Canadian nickel exploration company's share price started off the year at C$0.30 before steadily climbing to reach a year-to-date high of C$0.69 on February 12.
2. Fathom Nickel (CSE:FNI)
Year-to-date gain: 34.78 percent; market cap: C$19.53 million; current share price: C$0.115
Exploration-stage Fathom Nickel says its mission is to target magmatic nickel sulfide discoveries to support the global electric vehicle market. The company’s Saskatchewan-focused portfolio includes the Albert Lake project, which holds nickel, copper and platinum-group metals (PGMs), and the Gochager Lake nickel-copper project. The 90,000 hectare Albert Lake project hosts the historic and past-producing Rottenstone deposit.
Fathom kicked off its winter exploration program at Albert Lake during the first week of February. According to the company, the first hole will target a "very strong, very prominent conductor dominating the northeastern section of the figure." Fathom will also aim to further test and potentially find the source of a multi-element soil geochemical anomaly at the Tremblay-Olson claims area. It plans to complete five to seven drill holes to that end.
The company’s share price has moved from C$0.12 at the start of the year to a year-to-date high of C$0.21.
3. Sama Resources (TSXV:SME)
Year-to-date gain: 20 percent; market cap: C$25.31 million; current share price: C$0.12
Sama Resources’ focus is on the Samapleu nickel-copper-PGMs project in Côte d’Ivoire, West Africa, which includes the Samapleu and Grata deposits. Samapleu is a joint venture between Sama (70 percent) and Ivanhoe Electric (30 percent); Ivanhoe Electric has the option to purchase up to a 60 percent interest in the project.
In the first few weeks of the year, Sama has already dropped a few press releases. The company shared highlights from its ongoing 3,800 meter winter drilling program at the Yepleu prospect. Importantly, the work has confirmed that newly discovered nickel-copper-PGMs mineralization measures 500 by 400 meters, is near surface and open in all directions. Drill results from the program so far include drill hole S-349, which intersected 53 meters of combined mineralization layers grading 0.29 percent nickel, including 2.6 meters at 1.31 percent nickel and 0.95 percent copper.
Sama’s share price started off the year at C$0.11 before jumping to a year-to-date high of C$0.14 on February 12.
4. FPX Nickel (TSXV:FPX)
Year-to-date gain: 13.33 percent; market cap: C$93.15 million; current share price: C$0.34
FPX Nickel is developing its flagship development-stage Baptiste nickel project in the Decar Nickel District of BC. The property is host to four targets, including the Baptiste deposit and the Van target, the former of which is the company’s primary target. The company is targeting both the stainless steel and battery-grade nickel markets.
FPX Nickel is currently conducting environmental baseline activities, and preparing for a feasibility study at Baptiste. In late January, the company announced a C$14.4 million strategic investment from Sumitomo Metal Mining Canada, which is a wholly owned subsidiary of Sumitomo Metal Mining (TSE:5713).
Through CO2 Lock, its majority owned subsidiary, FPX Nickel is pursuing carbon capture and storage technology as a means of lowering the carbon footprint associated with mining battery metals. In late February, CO2 Lock completed the first-ever successful injection of CO2 into a brucite-rich ultramafic mineral project as a part of a comprehensive field program taking place at its SAM site in Central BC. “This achievement marks a significant milestone in the development of CO2 Lock's innovative in-situ CO 2 mineralization technology,” states a press release.
Shares moved from a year-to-date low of C$0.27 in mid-January to a year-to-date high of C$0.40 on February 5.
5. Canada Nickel (TSXV:CNC)
Year-to-date gain: 11.2 percent; market cap: C$240.57 million; current share price: C$1.39
Canada Nickel Company has honed its efforts on its wholly owned flagship Crawford nickel sulfide project in Ontario’s productive Timmins Mining Camp. A bankable feasibility study demonstrates a large-scale nickel deposit with a mine life of 41 years, an after-tax net present value of US$2.5 billion and an internal rate of return of 17.1 percent. The company has said it is targeting both the electric vehicle and stainless steel markets.
A few big-name companies hold significant ownership positions in Canada Nickel, including Agnico Eagle Mines (TSX:AEM,NYSE:AEM), which holds an 11 percent stake, and Anglo American (LSE:AAL,OTCQX:AAUKF), which has a 7.6 percent stake. In February of this year, battery and electronic materials manufacturer Samsung SDI (KRX:006400) made an equity investment of US$18.5 million for an 8.7 percent ownership stake in the company.
Canada Nickel’s share price was trading at C$1.14 before jumping to a year-to-date high of C$2.24 on January 16.
In early February, the company shared that its wholly owned subsidiary, NetZero Metals, is planning to develop a nickel-processing facility and stainless steel and alloy production facility in the Timmins Nickel District. Canada Nickel’s share price had slid to C$1.35 on February 5 before rising up to C$1.46 on February 9 following the news.
Later in the month, Canada Nickel shared successful results from initial infill drilling at its 100 percent owned Bannockburn property, and announced a new discovery at the Mann property. Mann is a joint venture with Noble Mineral Exploration (TSXV:NOB,OTCQB:NLPXF) in which Canada Nickel can earn an 80 percent interest.
FAQs for nickel investing
How to invest in nickel?
There are a variety of ways to invest in nickel, but stocks and exchange-traded products are the most common. Nickel-focused companies can be found globally on various exchanges, and through the use of a broker or a service such as an app, investors can purchase companies and products that match their investing outlook.
Before buying a nickel stock, potential investors should take time to research the companies they’re considering; they should also decide how many shares will be purchased, and what price they are willing to pay. With many options on the market, it's critical to complete due diligence before making any investment decisions.
Nickel stocks like those mentioned above could be a good option for investors interested in the space. Experienced investors can also look at nickel futures.
What is nickel used for?
Nickel has a variety of applications. Its main use is an alloy material for products such as stainless steel, and it is also used for plating metals to reduce corrosion. It is used in coins as well, such as the 5 cent nickel in the US and Canada; the US nickel is made up of 25 percent nickel and 75 percent copper, while Canada's nickel has nickel plating that makes up 2 percent of its composition.
Nickel's up-and-coming use is in electric vehicles as a component of certain lithium-ion battery compositions, and it has gotten extra attention because of that purpose.
Where is nickel mined?
The world's top nickel-producing countries are primarily in Asia: Indonesia, the Philippines and New Caledonia make up the top three. Rounding out the top five are Russia and Canada. Indonesia's production stands far ahead of the rest of the pack, with 2023 output of 1.8 million MT compared to the Philippines' 400,000 MT and New Caledonia's 230,000 MT.
Significant nickel miners include Norilsk Nickel (OTC Pink:NILSY,MCX:GMKN), Nickel Asia, BHP Group (NYSE:BHP,ASX:BHP,LSE:BHP) and Glencore (LSE:GLEN,OTC Pink:GLCNF).
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Canada Nickel, FPX Nickel and Noble Mineral Exploration are clients of the Investing News Network. This article is not paid-for content.
Nickel Creek Platinum Announces Non-Brokered Private Placement
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES/
Nickel Creek Platinum Corp. (TSX: NCP) ("Nickel Creek" or the "Company") is pleased to announce that it intends to raise capital by way of a non-brokered private placement for aggregate gross proceeds to the Company of up to $0.7 million (the "Private Placement"). The Private Placement will consist of the sale of common shares of the Company (each, a "Common Share") at a price of $0.015 per Common Share.
The net proceeds from the Private Placement will be used for general corporate purposes.
In connection with the Private Placement, the Company's largest shareholder, Electrum Strategic Opportunities Fund L.P. ("Electrum"), has indicated its intention to invest approximately $0.6 million in the Private Placement.
The closing of the Private Placement is expected to occur on or around March 8, 2024 and remains subject to the approval of the Toronto Stock Exchange and other customary closing conditions for a transaction of this nature. The Common Shares will be issued on a private placement basis pursuant to exemptions from prospectus requirements under applicable securities laws and will be subject to a statutory hold period of four months and one day from the date of issuance of the Common Shares.
Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Private Placement would constitute a "related party transaction" as Electrum (and certain other insiders of the Company) will subscribe for Common Shares. These transactions will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as the fair market value of any Common Shares subscribed for by insiders pursuant to the Private Placement will not exceed 25% of the Company's market capitalization.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States unless registered under the 1933 Act and any applicable securities laws of any state of the United States or an applicable exemption from the registration requirements is available.
About Nickel Creek Platinum Corp.
Nickel Creek Platinum Corp. (TSX: NCP; OTCQB: NCPCF) is a Canadian mining exploration and development company and its flagship asset is its 100%-owned Nickel Shäw Project. The Nickel Shäw Project is a large undeveloped nickel sulphide project in one of the most favourable jurisdictions in the world, with a unique mix of metals including copper, cobalt and platinum group metals. The Nickel Shäw Project has exceptional access to infrastructure, located three hours west of Whitehorse via the paved Alaska Highway, which further offers year-round access to deep-sea shipping ports in southern Alaska.
The Company is led by a management team with a proven track record of successful discovery, development, financing and operation of large-scale projects. Our vision is to create value for our shareholders by becoming a leading North American nickel, copper, cobalt and PGM producer.
Cautionary Note Regarding Forward-Looking Information
This news release includes certain information that may be deemed "forward-looking information". Forward-looking information can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "believe", "continue", "plans" or similar terminology, or negative connotations thereof. All information in this release, other than information of historical facts, including, without limitation, statements relating to the Private Placement, the timing of closing of the Private Placement, insider participation in the Private Placement, and general future plans and objectives for the Company and the Nickel Shäw Project, are forward-looking information that involve various risks and uncertainties. Although the Company believes that the expectations expressed in such forward-looking information are based on reasonable assumptions, such expectations are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking information.
For more information on the Company and the key assumptions, risks and challenges with respect to the forward-looking information discussed herein, and about our business in general, investors should review the Company's most recently filed annual information form, and other continuous disclosure filings which are available at www.sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Canada Nickel
Overview
Canada Nickel Company (TSXV:CNC) is a potential leader in next-generation, large-scale nickel supply and one of the few suppliers outside of Indonesia and China.
Nickel demand has very sound growth prospects led by its applications in batteries for EVs and stainless steel, and other uses. Global nickel demand has grown at an annual pace of 9 to 10 percent in the first three years of this decade and is expected to continue to maintain that pace going forward, according to the International Nickel Study Group. Canada Nickel has its forecast and expects demand to double by 2030 to more than 5 Mt and potentially upwards of 6 Mt. The bulk of this growth is expected to come from the EV sector.
The nickel supply dynamics contain significant political risks. Just three countries – Indonesia, Philippines and Russia – control over 67 percent of the overall supply, with Indonesia alone accounting for nearly 50 percent. This concentration of supply is risky and any resource outside these three countries will be regarded as highly valuable.
The other issue with the current supply is its high carbon footprint, and the nickel produced is typically termed as “dirty nickel.” Indonesian supply carries a massive carbon footprint, generating 60 to 90 tons of CO2 per ton of nickel produced. Furthermore, integrated Chinese supply chains are unfavorable given the geopolitical tensions between China and many countries.
Against this backdrop, Canada Nickel offers the potential for large-scale nickel supply outside of Indonesia and China, with the potential for zero carbon production. The company operates in a substantial new nickel district in the established Timmins mining camp in Ontario, led by its flagship Crawford nickel sulfide project.
The Crawford project has the world’s second-largest nickel reserve. With a mine life of 41 years, the project offers an after-tax NPV of US$2.5 billion and an IRR of 17.1 percent. Factoring in carbon capture and store credits will increase the after-tax NPV to US$2.6 billion and IRR to 18.3 percent. Based on the bankable feasibility study, Crawford is expected to be a low-cost producer with first quartile net C1 cash cost of US$0.39/lb, and net all-in-sustaining costs of US$1.54/lb. The economics suggest a highly profitable mine with an annual EBITDA of US$667 million and annual free cash flow (FCF) of US$431 million over the life of the mine.
The project is expected to be environmentally friendly with a net negative contribution to the global CO2 footprint. Further, Canada Nickel has developed a novel method for accelerated carbon capture and storage called, in-process tailings (IPT) carbonation. The ability to capture and store carbon will make Canada Nickel eligible for carbon credits (current rate at C$25/t) which will provide significant additional revenue on top of the nickel revenue.
Canada Nickel expects to receive the final permits for the Crawford project by mid-2025, after which the decision for construction will be taken. The project is anticipated to start production by the end of 2027.
Besides the Crawford project, Canada Nickel also owns or holds the option to own 25 additional targets in the Timmins region, all within proximity of the Crawford project. Eleven of these targets have similar mineralization to Crawford and have a larger footprint. Thus, Canada Nickel aims to unlock a district-scale nickel camp in the Timmins region.
The potential of the region is further endorsed by several investments from mining majors and other global companies. Samsung SDI announced an investment of US$18.5 million by buying 15.6 million shares at C$1.57/share. Following this, Samsung SDI now owns approximately 8.7 percent of Canada Nickel shares on a non-diluted basis.
Samsung SDI’s investment follows Agnico Eagle’s investment in early January 2024, whereby it purchased a 12 percent stake in Canada Nickel. Anglo American, a major global miner, also invested C$24 million in Canada Nickel for a 9.9 percent interest. We believe these investments underscore confidence in the potential of Crawford.
Canada Nickel also recently announced that it intends to develop Downstream Nickel and Stainless Steel Facilities in Timmins Region under a wholly owned subsidiary, NetZero Metals. This is expected to be the largest nickel processing facility in North America and largest stainless-steel and alloy production facility in Canada to fill a key gap in the North American electric vehicle supply chain – utilizing proven, low environmental footprint technology.
Each production facility is expected to use Canada Nickel’s carbon storage capacity at its Crawford Nickel project to deliver zero carbon nickel and stainless steel and alloy production. The Company is currently at the site-selection stage, considering several sites in the region. The Company is also in the process of choosing engineering firms to complete the design of both facilities and expects to announce the selected firms shortly. Feasibility studies are underway and expected to be completed by year-end, with the nickel processing plant expected to begin production by 2027.
Mike Cox, will lead NetZero metals and has assembled a global experienced team. Mike has 35 years of nickel processing experience and senior leadership positions with Inco Ltd. and Vale SA overseeing a global portfolio of nickel refineries.
The funding for each project expected to come from various government programs (Federal/provincial/DOD) and potential partners (multiple discussions underway).
Company Highlights
- Canada Nickel Company is focused on delivering large-scale nickel supply via its flagship property, the 100 percent owned Crawford Nickel Sulphide project in Timmins, Ontario.
- The presence in the prolific Timmins mining camp with access to excellent infrastructure and proximity to other producing mines is a positive.
- Crawford’s bankable feasibility study demonstrates strong financial returns based on a large resource with significant upside potential. The project boasts of the world’s second-largest nickel reserves, with approximately 3.8 million tons (Mt) with a mine life of 41 years, after-tax NPV of US$2.5 billion, and IRR of 17.1 percent (excluding projected carbon capture and store credits).
- Nickel demand prospects are very bright, driven by the increasing demand for batteries needed for electric vehicles. The nickel market is expected to remain in a shortfall in the medium to long term with little supply outside of Indonesia and China.
- The Crawford project has the potential to produce net-zero carbon nickel. A large and zero carbon production source of supply away from Indonesia and China makes it very attractive.
- Several established companies have large ownership in the company. Agnico Eagle holds a 11 percent stake, Samsung SDI holds 8.7 percent and Anglo American maintains 7.6 percent ownership. Such significant investment by major global companies increases confidence in the potential of the company’s assets.
Key Project
Crawford Nickel-Sulphide Project
The Crawford project is the company’s flagship nickel project. The project is 100 percent owned by the company and located in the Timmins Nickel District, adjacent to major infrastructure.
The project benefits from excellent infrastructure that includes roads and railways, electricity, and the availability of water. The region has a rich mining history, and the project is adjacent to producing mines and benefits from a significantly skilled workforce.
The bankable feasibility study (BFS) for the project was completed in October 2023. At 3.8 Mt of contained nickel (nickel grade at 0.22 percent), the project ranks second globally in terms of reserves. Based on the study results, the project is expected to be the third largest nickel sulfide operation worldwide. Moreover, the project has potential to be a low-cost producer and falls in the first quartile of the cost curve. The project is also expected to have a significantly low carbon footprint, potentially generating 2.3 tons of CO2 per ton of nickel equivalent production, which is 89 percent lower than the industry average.
The Crawford BFS highlights robust economics for the project. The after-tax NPV stands at US$2.5 billion, implying an after-tax IRR of 17.1 percent. The project has a long mine life of 41 years with an initial capex pegged at US$1.9 billion. The resource is estimated at 1.6 Mt of nickel, 58 Mt of iron, and 2.8 Mt of chrome over the project life, and peak nickel production is estimated at 48,000 tons per annum. The cost of production is significantly low, with a life-of-mine average net C1 cash cost of US$0.39/lb. The project is expected to be highly profitable with an average annual EBITDA of US$667 million and a free cash flow of US$431 million over the life of mine.
Crawford contains the world’s 2nd largest nickel reserves
The project has completed the first phase of federal permitting and is less than 18 months away from receipt of final permits and the construction decision.
The key planned milestones are:
- 2024: Filing of environmental impact statement by mid-2024 and financing arrangement (debt/equity packages) by year-end 2024.
- 2025: Receipt of final permits and construction decision by mid-2025
- 2026: Construction of the project
- 2027: First production by year-end
2024 Catalysts are:
- Offtake Agreement
- Texmont Resource & PEA
- Continued Systematic District Exploration & Resource Definition
- Environmental Impact Statement
- First Nations Definitive Agreements
- Crawford Funding Package (Offtake, Equity, Debt)
Once in production, Crawford is expected to host one of Canada’s largest carbon storage facilities and will be a net negative contributor of CO2. The carbon storage facility has significant potential to generate additional carbon credit revenues on top of the nickel production revenues.
Management Team
Mark Selby - CEO
Mark Selby holds a Bachelor of Commerce (Honors) from Queen's University. Previously, he was the CEO of RNC Minerals, which successfully raised over $100 million. He has held senior leadership roles at Quadra Mining, Inco, Purolator Courier, and Mercer Management Consulting. He has also served on the boards of several junior mining companies.
Wendy Kaufman – CFO
Wendy Kaufman holds a BBA from Wilfrid Laurier University and is a chartered professional accountant (CPA, CA). She has over 25 years of rich experience with several junior and mid-tier mining companies in various domains. She has served as CFO and held other senior roles at Khiron Life Sciences, Pasinex Resources, Primero Mining, and Inmet Mining.
Steve Balch – VP Exploration
Steve Balch is an Ontario-registered geoscientist. He has over three decades of experience in geophysics and large exploration compilations. Earlier, he worked with Inco in the Sudbury Basin and at Voisey’s Bay and Aeroquest. He is also the founder of Triumph Instruments and was instrumental in developing the AirTEM system. He has also been active in borehole geophysics and developed several novel technologies.
Pierre-Philippe Dupont – VP Sustainability
Pierre-Philippe Dupont holds an MSc from Laval University and has over 15 years of experience in acquiring environmental, community stakeholder, and First Nation approvals for mining projects. Previously, he worked with RNC Minerals and Glencore, and was involved in the permitting process for major resource projects such as the Canadian Malartic Gold Mine and the Canadian Royalties Nickel Mine.
Desmond Tranquilla – VP Projects
Desmond Tranquilla has over three decades of experience supporting major capital projects in mining and major greenfield and brownfield infrastructure projects. He has held several management and leadership roles on behalf of asset managers, mining companies and major engineering firms. Before joining the company, he served as director of construction at SNC-Lavalin North America and delivered several projects.
Chris Chang – VP of Corporate Development
Chris Chang holds a BBA from Schulich School of Business at York University. He has over 17 years of experience in capital markets and investment banking. He previously worked with Macquarie Capital Markets, Raymond James and Laurentian Bank Securities.
John Leddy – Senior Advisor Legal & Strategic Matters
John Leddy has over two decades of experience as a business lawyer and in private equity. Previously, he also worked as a partner at Osler and is a member of the Law Society of Upper Canada.
Adam Schatzker – VP Corporate Development
Adam Schatzkar is focused on unlocking the value of the IPT Carbonation process and the potential for a zero carbon industrial cluster in the Timmins-Cochrane region. He has three decades of experience focused on mining. He has worked in equity research and investment banking roles at RBC Capital Markets. He was also associated with Uranium One, the fourth-largest uranium producer.
David Smith – Chairman
David Smith holds a B.Sc. from Queen’s University and an M.Sc. in mining engineering from Arizona University. Previously, he served as the CFO at Agnico Eagle Mines. He has held a variety of mining engineering positions in Canada and abroad and is a former director of Three Valley Copper and eCobalt Solutions.
Francisca Quinn – Director
Francisca Quinn holds an M.Sc. in economics and an MBA from the Stockholm School of Economics. She is the co-founder and president of Quinn & Partners, an advisory firm focused on sustainability in business and capital markets. She has over 25 years of corporate strategy experience, having worked with Oliver Wyman. She has also been associated with Carbon Trust and WSP.
Jennifer Morais – Director
Jennifer Morais holds a BCom and MBA from the University of Toronto and is a chartered financial advisor (CFA) charter holder and a member of the Toronto CFA Society. She has over two decades of experience as a senior executive in the global private equity, alternatives industry, global mining finance, and management consulting fields. She is currently co-founder and managing partner of Acuity Partners and has previously worked with TPG Capital, CPPIB, OMERS, Hatch and CIBC.
Mike Cox – Director
Mike Cox holds a BSc (Hons) in chemistry and an MBA, both from the University of Glamorgan. He has over three decades of experience and has held several senior roles at Inco and Vale. He is now a partner at CoDa Associates, which provides advisory services to the corporate and public sectors.
Kulvir Singh Gill – Director
Kulvir Gill holds a B.Sc. and a B. Comm. from the University of Calgary and the ICD.D designation from the Institute of Corporate Directors. He has over two decades of experience working on innovation and sustainability within the global mining industry. He works with the strategy firm Clareo for international Fortune 500 clients across multiple sectors and was the founding executive director of the Development Partner Institute.
This article was written in collaboration with Couloir Capital.
Australia Adds Nickel to Critical Minerals List
Nickel’s plunging price has prompted the Australian government to add the metal to its critical minerals list.
Nickel is considered a key material for the electric vehicle (EV) battery and energy storage sectors, but demand for the metal is still primarily linked to the stainless steel industry.
Right now, global economic pressures are weighing on demand across the board. At the same time, the nickel market is experiencing a significant supply overhang from Indonesia, the Philippines and China. The prevailing supply/demand imbalance has been clearly reflected in nickel prices, which hit their lowest level in three years in mid-February.
Australia is the world's sixth largest nickel producer, and this low-price environment is wreaking havoc on nickel mining in the country — it's led to reduced or sidelined operations at six different nickel facilities in the country since December 2023, including First Quantum’s (TSX:FM,OTC Pink:FQVLF) Ravensthorpe nickel operation in Western Australia.
AU$4 billion Critical Minerals Facility
Friday's (February 16) news that Australia’s government has decided to add nickel to its critical minerals list has come as a welcomed relief to the country’s nickel-mining space.
Nickel’s critical mineral status effectively opens the door to funding for nickel companies through the government’s A$4 billion Critical Minerals Facility, as well as grants such as the International Partnerships Program.
Speaking about the announcement over the radio, Western Australia Premier Roger Cook said, “We have some levers around royalty relief and royalty rebates, and we’re looking at all options in terms of how we can support the industry.”
Nickel market participants have also responded positively to the government's move.
“Adding nickel to the critical minerals list makes sense and signals the Commonwealth Government intentions to deliver financial support to an industry that is hurting badly,” commented Warren Pearce, CEO of the Association of Mining and Exploration Companies, which represents over 500 member companies from all around Australia.
“It is pleasing to see both State and Federal Governments coming together to find bespoke measures that support projects still in operation, and those already in care and maintenance.”
Don't forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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