Which nickel companies have made gains so far in 2022? The Investing News Network looks at the top nickel stocks of the year.
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After seeing huge gains earlier in the year, the nickel price has cooled, and shares of nickel-focused companies on the TSX and TSXV have subsided along with it.
Back in Q1, nickel rocketed to US$100,000 per metric ton (MT) — an all-time high and a rise of 250 percent over the course of two days. In response, the London Metal Exchange suspended trading and canceled some trades.
Even though prices have pulled back, many nickel companies are still up significantly year-to-date, which can't be said for all commodities in this struggling market.
Below the Investing News Network has listed the top nickel stocks on the TSX and TSXV by share price performance so far this year. All year-to-date and share price data was obtained on June 20, 2022, using TradingView’s stock screener. The top nickel stocks listed had market caps above C$10 million at that time.
Year-to-date gain: 34.69 percent; market capitalization: C$40.11 million; current share price: C$0.33
Garibaldi Resources is an explorer focused on its high-grade Nickel Mountain project in BC, Canada. According to the company, it discovered Northwest BC’s first magmatic nickel massive sulfide, which is within the E&L intrusion at Nickel Mountain. The discovery contains seven metals, including nickel, copper and cobalt. Exploration highlights include 8.3 percent nickel, 4.3 percent copper and 0.19 percent cobalt over 16.75 meters.
Garibaldi released results from a 2021 ZTEM survey at Nickel Mountain on March 31. According to the release, “the large ZTEM response beneath E&L greatly expands the potential for further discovery beneath and around E&L.” In the week following this news, company shares jumped to a year-to-date high of C$0.63 on April 4. Since then, the company has released follow-up information about the ZTEM results, including the identification of a new pipe-like target, and has announced the purchase of an additional mineral tenure that is contiguous with its Red Lion project.
Garibaldi’s most recent news came on May 13, when it announced that exploration at the Casper quartz gold vein discovery showed 30 grams per MT gold, after which the company saw a small share price spike.
Year-to-date gain: 30 percent; market capitalization: C$15.84 million; current share price: C$0.13
Grid Metals is a nickel explorer and developer working out of Canada’s Manitoba and Ontario provinces. The company holds a portfolio of five projects that all tie into its goal of targeting the battery metals industry. Grid’s flagship project is its Makwa Mayville nickel-copper project, which also hosts platinum-group metals and cobalt mineralization. Near Makwa Mayville is Grid’s Mayville lithium property. The company is also exploring the Donner Lake lithium project.
The company’s share price rose with nickel to hit a year-to-date high of C$0.23 on March 10. On March 11, it released drill results from its Bannockburn nickel property; the best result was 341.7 meters averaging 0.28 percent nickel. Since then, Grid has released exploration results for two drill holes at Donner Lake and 14 at Makwa Mayville. Grid released further positive news at Donner Lake that extended the Northwest Dyke target, which started a share price gain that met its previous high on May 3; it shared the discovery of new high-grade lithium at the project on May 12.
On June 7, Grid Metals and Canada Nickel Company (TSXV:CNC,OTCQX:CNIKF)announced that Grid would be selling Bannockburn to the latter company. In return, Grid Metals will receive 2 million Canada Nickel common shares.
Year-to-date gain: 25.64 percent; market capitalization: C$200.63 million; current share price: C$0.49
Sherritt International is a miner, producer and refiner of high-purity nickel and cobalt, and its primary focus is nickel. The company operates a mine in Cuba and a refinery in Alberta, both of which are part of its 50/50 Moa joint venture with Cuba’s General Nickel Company. The vertically integrated joint venture has a capacity of 35,000 tonnes of nickel and 3,800 tonnes of cobalt produced per year.
In February, Sherritt released its 2021 production results and 2022 guidance. Among other details, the company revealed it expects a production increase for nickel, from 31,184 tonnes in 2021 to guidance of 32,000 to 34,000 tonnes for this year. On March 1, the company announced the appointment of decarbonization expert Chih-Ting Lo to its board of directors, and also named Maryse Bélanger as deputy chair. The focus of these changes is to strengthen Sherritt's commitment to environmental, social and governance matters.
Sherritt’s share price shot up alongside the nickel price to reach a high of C$0.82 on March 10. On May 11, the company shared its first quarter results, including its portion of finished nickel production at Moa of 3,875 MT.
Year-to-date gain: 25 percent; market capitalization: C$104.24; current share price: C$1.25
Unlike the other companies on this list, Nickel 28 Capital is a streaming and royalty company focused on battery metals, primarily nickel and cobalt. The company has an 8.56 percent joint venture interest in the Ramu nickel-cobalt operation in Papua New Guinea, as well as royalty agreements for 13 nickel and cobalt projects.
The company hasn’t released much news thus far in 2022. On February 1, it shared full-year and Q4 2021 operating results for the Ramu project, including annual output of 31,594 MT of contained nickel and sales of 32,793 MT. Although Nickel 28 didn’t release more news until May 9, its share price has trended upwards this year, with a spike in early March and steady growth in April. It hit its year-to-date high of C$1.73 on April 20, but fell off in early May.
On May 9, the company shared its Q1 results for Ramu, with production of 8,756 MT of contained nickel and sales of 3,336 MT. Nickel 28's share price saw a small spike in early June, which it maintained through the June 1 release of its results for the 2021 financial year, including repayment of US$38 million of debt. Its share price has fallen again recently, but it is still up year-to-date.
Year-to-date gain: 20 percent; market capitalization: C$127.36 million; current share price: C$0.60
FPX Nickel is a nickel company developing its flagship Decar Nickel District in BC, at which its main focus is the Baptiste deposit. It has recently begun exploring the Van deposit at the same property. It also has 100 percent ownership of three other nickel projects in BC and one in Canada's Yukon.
FPX’s share price soared in early March alongside the nickel price and on the release of news that the company had appointed a new principal metallurgist; the firm hit a year-to-date high of C$0.87 on March 8. Other March news includes drill results at Baptiste and the creation of a subsidiary called CO2 Lock to pursue carbon capture technology.
The majority of FPX's news since then has focused on Decar. On May 24, the company shared plans for an exploration drilling program at the Van target. At the Baptiste deposit, the company announced positive findings for the use of carbon capture technology for tailings at the site, as well as news on engineering trade-off studies at the site.
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Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Canada Nickel Company and FPX Nickel are clients of the Investing News Network. This article is not paid-for content.
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