Scotiabank’s Mohr Sees Nickel at US$8.30 per Pound in 2014

Mineweb reported that according to Scotiabank’s Patricia Mohr, nickel supply will fall 20 percent this year, largely due to Indonesia’s export ban. As a result, her firm now sees the metal averaging US$8.30 per pound this year, $10.75 in 2015 and $12.50 in 2016.

As quoted in the market news:

‘Canada will climb back into No. 3 spot in world nickel production this year, after the Philippines (No. 1, based on ore shipped to China for NPI [Nickel Pig Iron]) and Russia (No. 2),’ [Mohr] predicted.

‘The profitability of Canadian nickel mines have shifted from marginal to strength,’ she observed, as margins now average roughly 22% over costs including depreciation.

An important by-product of nickel mining in Sudbury, palladium has also jumped by 16% since late 2013, she added.

Click here to read the full Mineweb report.