The Conversation (0)
Pivotal Metals Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Pivotal Metals
Overview
Countries across the globe are setting energy transition goals to meet emissions targets, leading to increasing global competition for critical minerals. Canada and the US have developed their own clean energy strategies, yet both countries are also heavily reliant on imports. A common denominator among the critical mineral strategies is the need to develop domestic and/or IRA supply chains that will require significant government investment. All of these factors add up to a steadily growing global demand for minerals and fierce competition to win the attention of mining companies necessary to shore up supply of critical metals.
Pivotal Metals (ASX:PVT) is a global developer and explorer of world-class mineral deposits critical to an ever-increasing, technology-driven world economy. With copper and nickel assets in Canada, Pivotal Metals is committed to developing its projects in an environmentally and socially responsible manner.
The Horden Lake copper-nickel-PGM development project in Quebec, Canada has a JORC mineral resource estimate of 27.8 million tons (Mt) at 1.49 percent copper equivalent (CuEq) containing 414 kilotons (kt) of contained CuEq. The deposit starts at surface and is well located just 10 km from a national highway. In addition to defined resources, the deposit is open at depth and is considered highly prospective for discovery of additional resources. The project benefits from being in Quebec, a mature and supportive mining jurisdiction, and has access to low-cost, carbon-neutral La Grange hydropower.
The company’s Belleterre-Angliers Greenstone Belt (BAGB) exploration project has known high-grade nickel-copper-PGM deposits at Midrim, Lorraine and Alotta across a 157 square kilometre consolidated land holding. The company is targeting the mineralised feeder system that acted as the source for the numerous discoveries to date.
As of January 2024, exploration activities are on track across the company’s projects. Pivotal Metals is commencing an 8,000-metre drill program at the Horden Lake project, with the objective of potential size and grade increases of the deposit, and collection of metallurgical sample for optimisation test work. Downhole geophysics will be completed to target extensions of the mineralisation. At the BAGB property, results are pending on a magnetotelluric survey to aimed to highlight controlling structures and target future drilling to test substantial massive and semi-massive sulphide accumulations
Pivotal Metals has $5.3 million in cash and completed a $2.5 million placement. Consistent news flow is expected as work programs across its properties are being implemented.
An experienced management team and board of directors lead the company. Ivan Fairhall, managing director and mechanical engineer, brings 20 years of experience in the resource sector focused on development stage companies. Eddy Canova, executive operations, Canada, is a professional senior geologist with extensive experience in advancing exploration projects in Quebec and internationally.
Company Highlights
- Pivotal Metals is an exploration and development mining company with assets in Canada, enabling it to become a significant contributor to IRA-compliant supply chains of critical minerals.
- The company’s Horden Lake copper-nickel-PGM project in Quebec is an advanced project with a JORC mineral resource estimate of 27.8 million tons (Mt) at 1.49 percent copper equivalent (CuEq) containing 414 kt of contained CuEq.
- The Belleterre-Anglier Greenstone Belt (BAGB) Project, also in Quebec, is an exploration stage asset with known, very high-grade nickel-copper-PGM discoveries.
- Pivotal Metals is led by an experienced management team and board of directors that create confidence in its ability to reach its goals.
- Pivotal Metals is well financed to execute an exploration and project development work program across its properties in 2024.
Key Projects
Horden Lake Copper-Nickel-PGM
Pivotal Metals acquired the Horden Lake polymetallic deposit in northwestern Quebec in September 2022. Horden Lake is an advanced project located approximately 140 kilometres north of the mining town of Matagami, and 300 kilometres north of the company’s wholly owned Belleterre-Angliers Copper-Nickel-PGM project, also in Quebec. The company has said that the project will be developed as a carbon-neutral operation, by accessing the low-cost La Grange hydroelectric power complex.
Project Highlights:
- JORC Mineral Resource Estimate: 27.8 Mt at 1.49 percent CuEq containing 414 kt of contained CuEq
- Excellent Exploration Upside: the deposit is open at depth across almost its entire strike, and as a structurally controlled system is considered to have good prospectivity for resource extension.
- Potential for Fast-tracking: Significant body of historical technical study work and more than 50,000 metres of drilling database makes for a well-defined resource and a huge potential to accelerate the project to pre-feasibility study
- Stable Infrastructure: Close to existing mines, transportation links and large hydropower facilities
- By-product Potential: Intercepts showed good grades of gold and cobalt, as well as silver and PGMs, not all of which are currently included in the resource.
Belleterre-Anglier Exploration Project
Pivotal Metals strengthened its PGM-nickel-copper sulphide portfolio in Canada by consolidating the Alotta, Lorraine, Midrim and Laforce discoveries, to create the Belleterre-Anglier PGM-nickel-copper exploration project. The package dominates the eastern portion of the Belleterre-Angliers Greenstone Belt located in the Abitibi-Pontiac Greenstone. Exploration to date has discovered Ultra-High grades drilled into gabbroic intrusions by previous operators, and included historical mining of some deposits. The exploration strategy is to target a broader intrusive complex that could host substantial massive and semi-massive sulphide accumulations, and search for anomalies and targets of real scale.
The company now has a total of 137 new and reclassified targets identified across the combined exploration package, 20 of which were identified as ‘priority 1’ for further investigation. A MT geophysical survey has been completed to further highlight deeper controlling structures to improve targeting for future drilling.
Project Highlights:
- Best drill intercept of 9.4 metres of 3.5 percent nickel, 4.3 percent copper and 4.6 grams per ton (g/t) PGM at the Midrim discovery.
- Previous open-pit mining at Lorraine during the 1960s produced recovered grades of 0.38 percent nickel, 0.90 percent copper, 0.62 g/t gold
- Drill results at Alotta are comparable to the historic high-grade polymetallic intersections at Pivotal Metals’ existing Midrim project, located just 1.5 kilometres NE of Alotta.
- Completed assays at Midrim and LaForce serve as proof of concept that the geological formations contain significant deposits. Testing has revealed 5 percent nickel in 10 percent sulfide at the Midrim nickel tenor and 10 percent sulfide at the Laforce nickel tenor
Management Team
Simon Gray - Non-executive Chairman
Simon Gray was previously a director on the boards of Morgans Financial Limited and before that Shaw and Partners Limited, each being among the largest investment and wealth management firms in Australia. Before this, he was at various times Shaw’s deputy CEO and general counsel. Gray has a strong background in law and financial markets, having obtained a bachelor of law and Aster of law in corporate and commercial law, and as a graduate of the Australian Institute of Company Directors.
Ivan Fairhall - Chief Executive Officer and Managing Director
Ivan Fairhall is a chartered engineer and mine finance professional with nearly 20 years of mining industry experience. He was most recently the CEO of TSX-listed Mawson Gold, prior to which he spent seven years as a senior investment manager with the UK private equity group Greenstone Resources, where he successfully identified, acquired and managed investments in development stage companies through to standalone production. Through his career, Fairhall has obtained an extensive technical grounding in various design, construction and commissioning roles, including considerable experience managing pre-development studies across the commodity and geographic spectrum.
Dr. Robert Wrixon - Non-executive Director
Dr. Robert Wrixon is currently a director of the mining venture capital group Starboard Global Limited and has 20 years of experience in corporate strategy, commodities marketing, mining M&A and mineral exploration management. He has previously run two listed junior resources companies in Australia, and prior to that spent five years in corporate strategy for Xstrata plc based in Sydney and London. Wrixon is an Irish national and holds a Ph.D. in mineral engineering from the University of California, Berkeley. Wrixon is not considered to be an independent director.
Steven Turner - Non-executive Director
Steven Turner brings over 25 years of experience in the resource sector, having held senior roles in both industry and investment banking. During his career, Turner has been based in London, Aberdeen, Singapore, Brisbane and Madrid. Turner has raised significant capital for the development of resource projects, including equity, public bonds and project finance. Most recently he was head of business development at a private mining group, having been instrumental in the successful growth of the company from a junior to mid-tier Australian base metal operator. Turner holds Australian, Canadian and UK citizenship and is a fellow of The Chartered Accountants of England and Wales and a member of the Australian Institute of Company Directors.
Daniel Rose- Non-executive Director
Daniel has extensive experience in the investment banking industry, commodity financing, origination and trading. He most recently served as CEO and director of VTB Capital Hong Kong (VTBC), overseeing an SFC-regulated investment banking platform focused on natural resources activities across global markets, structured and corporate finance, M&A and asset management. Rose has spent 18 years in the commodity markets working for Societe Generale (before VTBC) in Sydney, London, Hong Kong and Singapore. Rose holds a Bachelor of Law (Hons) and Bachelor of Commerce degrees from Bond University.
Eddy Canova – Executive Operations, Canada
Eddy Canova is a professional senior geologist (OGQ (403)-PGeo) with extensive experience of advancing exploration projects both in Quebec and internationally. Canova has successfully advanced exploration projects from inception to mine development, managed mining operations, and has followed through various study stages: preliminary economic evaluation, pre-feasibility, feasibility and environmental impact studies.
Amanda Wilton-Heald - Company Secretary
Amanda is a chartered accountant with over 20 years of accounting, auditing (of both listed and non-listed companies) and company secretarial experience within Australia and the UK. Amanda has been involved in the listing of junior explorer companies on the ASX and has experience in corporate advisory and company secretarial services.
Ramp Metals: Battery Metals Exploration Company Focused on Mining Assets in Saskatchewan
Ramp Metals (TSXV:RAMP) specializes in battery and base metals, particularly nickel and lithium with three properties, two situated in Northern Saskatchewan, Canada, and one in Nevada, United States. The company's Rottenstone SW Claims is situated along a geological structure that historically yielded the highest-grade nickel and platinum group elements (PGE) in Canada. Rottenstone exhibits similarities to the Nova-Bollinger nickel-copper mine in Western Australia, which was discovered by Sirius Resources and ultimately sold to IGO Limited for AU$1.8 billion. The Nova-Bollinger mine had an estimated resource of 13.1 million tons (Mt) grading 2 percent nickel, 0.8 percent copper, and 0.07 percent cobalt.
Ramp Metals' fully permitted drill program in 2024 consists of four drilling locations with eight holes. The current drill program is focused on testing two of these targets. The first target is positioned at the anomaly within the center of the claims and falls within the "Rottenstone Eye" structure. The second target is an anomaly located outside the eye structure, approximately 3 kilometers east-southeast from the first location. To date, Ramp has successfully drilled four holes for a total of 1,180 meters.
The striking similarity between Rottenstone and Nova-Bollinger mine is encouraging and the appointment of Dr. Mark Bennett, the discoverer of the Nova-Bollinger deposit, as a strategic advisor, reinforces Ramp’s belief in the potential of the Rottenstone property. Bennett has over three decades of experience in establishing mines, and played a key role in multiple discoveries, such as the Wahgnion gold mine, the Thunderbox gold mine, and the Waterloo nickel mine, in addition to the Nova-Bollinger nickel-copper mine. Along with Bennett, Ramp Metals has also appointed leading geologist Scott McLean, a 35-year veteran in the mining industry, as its strategic advisor.
Company Highlights
- Ramp Metals is a battery and base metals exploration company with a focus on exploring high-grade nickel-copper-PGE in Northern Saskatchewan. Ramp intends to uncover the next major discovery essential for driving the green technology movement.
- The company has three properties covering a total area of 20,000 hectares. Of these, two are located in Northern Saskatchewan – Rottenstone SW Claims and Peter Lake Domain (PLD). The third property is located in Nye County, Nevada.
- The company’s flagship project Rottenstone SW property is situated adjacent to a northeast-southwest geological formation connected to the renowned Rottenstone Mine. This mine yielded 40,000 tons of high-grade nickel-copper-platinum group elements (PGE) and gold ore, with grades averaging 3.28 percent nickel, 1.83 copper, and 9.63 grams per ton platinum-palladium-gold.
- The geophysical program at Rottenstone highlights striking similarities with the Nova-Bollinger mine in Australia owned by Sirius Resources, which was eventually sold for AU$1.8 billion.
- Dr. Mark Bennett, founder of Sirius Resources who oversaw the development of the Nova-Bollinger mine, is a strategic advisor to Ramp Metals.
This Ramp Metals profile is part of a paid investor education campaign.*
Click here to connect with Ramp Metals (TSXV:RAMP) to receive an Investor Presentation
Nickel Price Update: Q1 2024 in Review
Oversupply from Indonesia
Lackluster pricing in the nickel markets is largely the result of the metal's ongoing oversupply position. The largest factor is the continued elevated production rates from Indonesia, which maintains its position as the global leader for the metal. The country produced 1.8 million MT of nickel in 2023, according to the USGS's latest Mineral Commodity Summary, representing half of global supply.
The country’s production has climbed exponentially over the past decade, and this was exacerbated by government initiatives that placed strict limits on the export of raw materials to encourage investment in production and refinement.
In an email to the Investing News Network, Exploration Insights Editor and Analyst Joe Mazumdar wrote, “The growth in EV production and the escalating demand for nickel in batteries prompted the Indonesian government to mandate increased local refining and manufacturing capacity from companies operating in the country.”
Data from S&P Global Market Intelligence provided by Mazumdar showed results of the mandates saw an estimated US$20 billion flowing into the industry in early 2023, with another US$10 billion in undisclosed funding, much of it originating from China.
Despite the lower quality of material coming from Indonesia, the investment was made to shore up supply lines for Chinese battery makers and earmarked for electric vehicle production. However, EV demand has waned through 2023 and into 2024 due to the high-interest rates, range anxiety and charging capacity, increasing nickel stockpiles and contributing to an ongoing oversupply situation.
A report on the nickel market provided by Jason Sappor, senior analyst with the metals and mining research team at S&P Global Commodity Insight, showed that short positions began to accumulate through February and early March on speculation that Indonesian producers were cutting operating rates due to a lack of raw material from mines, which helped push the price up.
The lack of material was caused by delays from a new government approvals process for mining output quotas Indonesia implemented in September 2023. The new system will allow mining companies to apply for approvals every three years instead of every year. The implementation has been slow, which was exacerbated by further delays while the country went through general elections.
The nickel market found additional support on speculation the United States government was eyeing sanctions on nickel supply out of Russia. However, base metals were ultimately not included in the late February sanctions. The price began to decline through the end of March as Indonesian quota approvals accelerated.
Production cuts from western producers
According to data from Macquarie Capital provided by Mazumdar, nickel prices slumping below the US$18,000 mark has made approximately 35 percent of production unprofitable, which would jump to 75 percent if the price were to fall below US$15,000.
Mazumdar indicated the pricing challenges have led to cuts from Australian producers like First Quantum (TSX:FM,OTC Pink:FQVLF) and Wyloo Metals which both announced the suspension of their respective Ravensthorpe and Kambalda nickel mining operations. Additionally, major Australian nickel producer BHP (ASX:BHP,NYSE:BHP,LSE:BHP) is considering cuts of its own.
Nickel price, Q1 2024.
Chart via the London Metal Exchange.
French territory New Caledonia’s nickel mining industry is facing severe difficulties due to faltering prices. The French government has been in talks with Glencore (LSE:GLEN,OTC Pink:GLCNF), Eramet (EPA:ERA) and raw material trader Trafigura, who have significant stakes in nickel producers in the country, and has offered a 200 million euro bailout package for the nation. The French government set a March 28 deadline for New Caledonia to agree to its rescue package, but a decision has not yet been reached as of April 11.
Earlier this year, Glencore announced plans to shutter and search for a buyer for its Koniambo operations, which it said has yet to turn a profit and is unsustainable even with government assistance. For its part, Trafigura has declined to contribute bail-out capital for its 19 percent stake in Prony Resources Nouvelle-Caledonie and its Goro mine, which is forcing Prony to find a new investor before it will be able to secure government funding. On April 10, Eramet (EPA:ERA) reached its own deal with France for its subsidiary SLN’s nickel operations that would see the company extending financial guarantees to SLN.
The situation has exacerbated tensions over independence from France, with opponents of the agreement arguing it risks the New Caledonia's sovereignty and that the mining companies aren’t contributing enough to bailouts of the mines, which employ thousands of New Caledonians. Reports on April 10 indicated that protests have turned violent.
While cuts from Australian and New Caledonian miners aren’t expected to shift the market from a surplus, Mazumdar expects it will help to maintain some price stability in the market.
“The most recent forecast projects demand (7 percent CAGR) will grow at a slower pace than demand (8 percent CAGR) over the next several years, which should generate more market surpluses,” he said.
Government intervention
In an email to INN, Ewa Manthey, Commodities Strategist at ING, suggests this places western producers in a challenging position to affect the market, even with cuts to production.
“The recent supply curtailments also limit the supply alternatives to the dominance of Indonesia, where the majority of production is backed by Chinese investment. This comes at a time when the US and the EU are looking to reduce their dependence on third countries to access critical raw materials, including nickel,” Manthey said.
This was affirmed by Mazumdar, who said the US is working to combat the situation through a series of subsidies designed to encourage western producers and aid in the development of new critical minerals projects.
“The US Inflation Reduction Act (IRA) promotes via subsidies sourcing of critical minerals and EV parts from countries with which it has a free trade agreement or a bilateral agreement. Indonesia and China do not have free trade agreements with the US,” Mazumdar said.
He went on to suggest that the biggest benefactors of this plan would be Australia and Canada, but also noted that with prices remaining depressed multi-billion dollar projects would face headwinds to get off the ground.
Green nickel
One way to encourage western production has been creating a separate price scheme with the creation of a green nickel market that plays into western producers' focus on environmental, social and governance (ESG). Green nickel is defined as a low-carbon product that produces less than 20 MT of carbon dioxide per MT of production.
The oversupply of lower-grade laterite has pulled prices down across the board, including for higher-grade and more environmentally friendly sulfide projects like those in Australia and Canada. This has led to the suggestion of premium pricing for green nickel; however, this hasn’t gained much traction on the London Metals Exchange (LME).
“There is little evidence that a premium for ‘green nickel’ producers or developers has much momentum although an operation with low carbon emissions may have a better chance of getting funding from institutional investors in western countries,” Mazumdar said.
Even though there might not be much interest in green nickel on the LME, there have been some vocal proponents like Wyloo’s CEO Luca Giacovazzi. He sees the premium as being essential for the industry, adding the industry should be looking for a new marketplace if the LME is unwilling to pursue a separate listing for green nickel.
The calls for a premium have largely come from western producers that incur higher labor and production costs to meet ESG initiatives, which is happening less amongst their counterparts in China, Indonesia and Russia.
Western producers were caught off guard early in March as PT CNGR Ding Xing New Energy, a joint venture between China’s CNGR Advanced Material (SHA:300919) and Indonesia’s Rigqueza International PTE, applied to be listed as a “good delivery brand” on the LME. The designation would allow the company, which produces Class 1 nickel, to be recognized as meeting responsible sourcing guidelines set by the LME.
If it is approved, which is considered to be likely, this would be the first time an Indonesian company would be represented on the LME. However, there has been pushback from western miners who have noted that production in Indonesia faces a range of ESG and responsible resourcing challenges.
Investor takeaway
Nickel is a critical metal for the production of batteries to be used in EVs. Generally, battery-grade nickel is processed from the higher quality raw material produced from sulfides, but more recently Chinese production has turned to lower quality laterites. While batteries made from laterite nickel have lower energy density, their cost is also much lower, which may provide key cost savings for EV buyers.
However, with lingering inflation and high interest rates globally, demand for EVs has fallen off over the past two years, which has in turn reduced the demand for nickel.
Meanwhile, despite some slow down due to the approval process, high supply rates from Indonesia have continued into 2024 and there doesn’t seem to be cuts on the horizon from the nation.
These factors have led to a drop in profits and curtailments from large nickel operations in western nations, and made companies unlikely to pursue the construction of new projects in the near term.
“Looking ahead, we believe nickel prices are likely to remain under pressure, at least in the near term, amid a weak macro picture and a sustained market surplus,” Manthey said.
The continued surplus in the market may provide some opportunities for investors looking to get into a critical minerals play at a lower cost, but a reversal may take some time.
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.
Pivotal Metals Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects