Mark Selby, president and CEO of RNC, shares his thoughts on the nickel market and what’s ahead for his company in this PDAC 2018 interview.
Speaking with the Investing News Network at this year’s Prospectors & Developers Association of Canada (PDAC) conference, Mark Selby, president and CEO of RNC (TSX:RNX), shared his thoughts on the nickel market and what’s ahead for his company in 2018.
Selby said that investors need to realize that even without the electric car story the nickel market has strong fundamentals.
“Nickel has had one of the highest-growth demand rates for many, many decades,” he noted, explaining that demand has grown over 5 percent a year for the last 10 years.
Selby expects the market to be in a prolonged period of deficit, but next year’s deficit might not be as big as this year due to new supply from Indonesia. That said, the market will need more supply to come on stream as demand continues to surge.
“Going forward there’s limits in terms of how much more new supply can come online” to meet that increasing demand, he added. “Our Dumont project will be one of the five largest sulfide operations in the globe and our first phase is just 35,000 tons, [but the market] needs 40 Dumonts so as to meet demand by the middle of this decade,” he said.
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Securities Disclosure: I, Priscila Barrera, 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.