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Nordic Nickel: Exploring District-scale Nickel Asset in Finland to Support Growing Demand
Nordic Nickel (ASX:NNL)) focuses on becoming a major supplier of sustainably sourced, traceable, high-purity class 1 nickel through its portfolio of highly prospective assets in Finland, a Tier-1 mining-friendly jurisdiction with long mining history in the Central Lapland Greenstone Belt.
Nordic Nickel’s 100-percent-owned flagship Pulju Project already has a JORC-compliant resource estimate of 133.6 million metric tonnes at 278,520 tonnes of nickel and 12,650 tonnes of cobalt. The Pulju Project’s unique mineralization is amenable to a dual exploration strategy of both near-surface disseminated nickel and deeper high-grade massive sulphide lenses. The project is located in an area of known mineralization where there have been a number of major discoveries, including the 304 Mt, open-pit Ni, Cu, Au, Kevitsa Mine, owned by Swedish mining company Boliden together with the world-class 44 Mt Cu, Ni, PGE, Sakatti Deposit discovered by Anglo American. Historical drilling has been shallow with no modern geophysics applied, which Nordic Nickel has now undertaken, and has identified multiple electromagnetic anomalies to target for the current 22,000-meter drilling campaign that is underway.
The current resource estimate for the Pulju Project is based on only 5 square kilometers out of a 250-square-kilometer land package. The company is conducting a 22,000-meter drill campaign to expand the areas of known mineralization and target Sakatti-style analogues of deeper high-grade massive sulphides.
Nordic Nickel’s second project, the Maaninkajoki 3 (MJ3) asset comprises 30 square kilometers of exploration licenses and is also situated in a region of known mineralization or similar mafic/ultramafic lithologies to the nearby Sakatti deposit. The company has an earn-in agreement to acquire 75 percent of the asset as exploration continues.
Company Highlights
- Nordic Nickel is an Australian exploration and development company focusing on its district-scale nickel assets in Northern Finland
- Finland is a Tier-1 mining jurisdiction with a deep history in the industry, resulting in mining-friendly regulations.
- The European Union Critical Minerals Act has included nickel as a critical mineral and exploration and development will benefit from future incentives.
- Nordic Nickel’s flagship Pulju Nickel Project already has a near-surface JORC-compliant resource estimate of 133.6 million tonnes, with 278,520 tonnes of Nickel and 12,500 tonnes of cobalt.
- The company’s second Maaninkajoki 3 Project covers 30 kilometers of exploration licenses, and the company has the option to earn up to 75 percent.
- An experienced management team with a track record and deep expertise in the natural resources industry leads the company.
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Nordic Nickel
Overview
Nordic Nickel (ASX:NNL) is a nickel sulphide exploration and development company focused on becoming a major supplier of sustainably sourced, traceable, high-purity class 1 nickel and battery minerals through its portfolio of highly prospective assets in Finland. A highly credentialed team with a solid track record and experience throughout the mining industry leads the company in executing its exploration and development strategy.
Finland is a Tier-1, mining-friendly jurisdiction with a long mining history in the Central Lapland Greenstone Belt. Additionally, the country is incentivising battery mineral projects and is positioned to become a major player in the full battery value chain, making it an ideal jurisdiction for exploration and development.
The European Union Critical Minerals Act includes nickel as a critical mineral and will play a vital role in the transition to clean energy and decarbonization.Nordic Nickel’s 100-percent-owned flagship Pulju Project already has a JORC-compliant resource estimate of 133.6 million metric tonnes at 278,520 tonnes of nickel and 12,650 tonnes of cobalt. The Pulju Project’s unique mineralisation is amenable to a dual exploration strategy of both near-surface disseminated nickel and deeper high-grade massive sulphide lenses. The project is in an area of known mineralisation and several major discoveries, including the 304-Mt, open-pit nickel (Ni), copper (Cu), gold (Au), Kevitsa Mine, owned by Swedish mining company Boliden, and the world-class 44-Mt Cu-Ni-PGE Sakatti Deposit discovered by Anglo American. Historical drilling has been shallow with no modern geophysics, which Nordic Nickel has now undertaken. Multiple electromagnetic anomalies have been identified and targeted for the 22,000-meter drilling campaign now underway.
The current resource estimate was estimated based on 10,000 meters of historical drilling at the Pulju Project is contained within only 5 square kilometers (2 percent) out of a 240-square-kilometer land package. Since the maiden resource was released Nordic Nickel has completed an additional 15,432-meter drill campaign which has substantially expanded the areas of known mineralization and will see a much larger mineral resource estimate due for release in Q1 2024. Additionally, the company remains focused on targetting Sakatti-style analogues of high-grade massive sulphides and the 2023 campaign is being used now to vector in on the high grade zones.
In 2023, Nordic Nickel secured an exploration licence (EL) for the Pulju Project. The newly granted EL, known as Holtinvaara, is highly prospective for nickel sulphide mineralisation and is three times the size of the Hotinvaara Prospect, which has been the focus of Nordic’s maiden exploration program and the company's resource development activities to date.Nordic Nickel’s second project, the Maaninkajoki 3 (MJ3) asset comprises 30 square kilometers of exploration licenses and is also in a region of known mineralisation or similar mafic/ultramafic lithologies to the nearby Sakatti deposit. The company has an earn-in agreement to acquire 75 percent of the asset as exploration continues.
A management team with a range of expertise throughout the mining industry builds confidence in the company’s goal to explore its assets fully. Expertise includes corporate administration, geology and international finance.
Company Highlights
- Nordic Nickel is an Australian exploration and development company focusing on its district-scale nickel and battery minerals assets in Northern Finland.
- Finland is a Tier-1 mining jurisdiction with a deep exploration and mining history with mining-friendly regulations and a strategy to become a major player in the European battery value chain.
- The European Union Critical Minerals Act includes nickel as a critical mineral and requires 10% of all critical minerals to be sourced from Europe (when presently there is less than 3%). There are only two producing nickel mines in Europe and they are both in Finland and exploration and development activities will benefit from future EU incentives.
- Nordic Nickel’s flagship Pulju Nickel Project already has a near-surface JORC-compliant resource estimate of 133.6 million tonnes, with 278,520 tonnes of Nickel and 12,500 tonnes of cobalt which is contained in less than 2 percent of the Pulju Project.
- The company’s second Maaninkajoki 3 Project covers 30 square kilometers of exploration licenses, and the company has the option to earn up to 75 percent.
- An experienced management team with a track record and deep expertise in the natural resources industry leads the company.
Key Projects
Pulju Nickel Project
The company’s 100-percent-owned flagship Pulju project covers 240 square kilometers of land in Finland's Central Lapland Greenstone Belt. Nordic Nickel has completed a maiden diamond drilling campaign with 15,423 meters completed since the beginning of 2023.
Project Highlights:
- Prolific Resource Estimate with Expansion Potential: The current JORC-compliant resource estimate indicates 133.6 million tonnes for 275,520 tonnes of contained nickel and 12,560 tonnes of contained cobalt. Since the maiden resource was released Nordic Nickel has completed an additional 15,432-meter drill campaign which has substantially expanded the areas of known mineralization and will see a much larger mineral resource estimate due for release in Q1 2024. Additionally, the company remains focused on targetting Sakatti-style analogues of high-grade massive sulphides and the 2023 campaign is being used now to vector in on the high grade zones.
- Encouraging Historical Drill Results: Past drill results, including 51 drill holes for both near-surface and deeper high-grade sulphides, have produced encouraging results.
- Near-surface:
- 97 meters at 0.33% Ni from 102 meters
- 122 meters at 0.25% Ni from 33 meters
- 108 meters at 0.26% Ni from 98 meters
- Massive sulphide intersections:
- 0.26 meters at 9.61% Ni, 0.17% CuCu and 0.36 % cobalt from 147.37 meters
- 0.90 meters at 4.98% Ni%, 0.03 % Cu and 0.14 % cobalt from 190.40 meters
- 0.32 meters at 5.03% Ni%, 0.06 % Cu and 0.24 % cobalt from 45.7 meters
- Near-surface:
- Promising Geology: The regional geology of the project is amenable to rich nickel deposits. The presence of ultramafic rocks mirrors the Sakatti and Kevitsa deposits. The project contains a 35-kilometer continuous prospective strike with considerable blue-sky potential as exploration continues.
- Newly Granted Exploration License: The new Holtinvaara exploration licence is highly prospective for nickel sulphide mineralisation and is three times the size of the Hotinvaara Prospect, which has been the focus of Nordic’s maiden exploration program and the company's resource development activities to date.
- Significant Assay Results: Nordic Nickel completed 28 diamond drill holes for 15,432 meters as part of its maiden drilling program. Assays have returned extensive zones of nickel sulphide mineralisation, including zones of higher-grade massive stringer sulphides.
- Some highlights from the 2023 maiden drill campaign include:
- 91.7m @ 0.22% Ni from 1.6m; and
- 164.15m @ 0.20% Ni from 216m; and
- 26.4m @ 0.59% Ni from 412.6m, including:
- 6.1m @ 0.74% Ni from 412.6m; and
- 4m @ 0.77% Ni from 420m; and
- 3.35m @ 0.91% Ni from 428m, including:
- 1.2m @ 1.02% Ni from 428m; and
- 2m @ 0.52% Ni from 433m
- 125.7m @ 0.19% Ni from 152.3m; and
- 54.25m @ 0.22% Ni from 319.55m, including:
- 5.8m @ 0.57% Ni from 322.25m
- 99.1m @ 0.22% Ni from 4.7m
- 64.3m @ 0.19% Ni from 220.3m; and
- 57.35m @ 0.17% Ni from 331.9m
Maaninkajoki 3 (MJ3) Nickel Project
Nordic Nickel’s MJ3 Project covers 30 square kilometers of exploration licenses. The asset is subject to an earn-in agreement, which gives the company the right to acquire up to 75 percent of the project over two stages. The project is highly prospective for both intrusive-hosted and komatiite-hosted nickel sulphide mineralization.
Management Team
Todd Ross - Managing Director and CEO
Todd Ross has over 24 years of experience in finance, derivatives and corporate advisory within the natural resources sector. He is the former managing director and head of Western Australia for BNP Paribas. Ross is a specialist in project and acquisition financings across a range of commodities across multiple jurisdictions. His previous roles include senior positions at BNP Paribas, Westpac, Royal Bank of Canada, CBA and Oakvale Capital. Ross holds a Bachelor of Business from Edith Cowan University and a Graduate Diploma in Applied Finance & Investment from FINSIA.
Marcello Cardaci - Non-executive Chairman
Marcello Cardaci is the former partner of Gilbert & Tobin’s Corporate Advisory Group. He has 25 years’ experience advising public and private equity fundraisings, M&A and divestment. Cardaci has extensive experience in capital raisings, takeovers, schemes of arrangements and joint ventures. His current directorships include ASX-listed Altamin Limited and Manhattan Corporation Ltd. Cardaci holds law degrees (BJuris, LLB) and commerce (BCom).
Robert Wrixon - Executive Director
Robert has over 20 years of experience in corporate strategy, mining M&A and mineral exploration. He is the director of Starboard Global Ltd, private equity and incubation of projects in the metals and mining sector. His current directorships include Rafaella Resources Ltd, Emmerson PLC. Wrixon holds a PhD in mineral engineering from the University of California, Berkeley.
Juho Haverinen - Non-executive Director
Juho Haverinen has over ten years of experience in planning and overseeing mineral exploration in Finland and is currently head of exploration for Magnus Minerals Oy. He has significant experience in Finland with exploration joint ventures with major multinational mining companies and is a member of the board of the Finnish Mining Association (FinnMin) and a board member of Magnus Minerals Oy. Haverinen holds BSc and MSc geology degrees from the University of Helsinki.
Aaron Bertolatti - Company Secretary and CFO
Aaron Bertolatti is a qualified chartered accountant and company secretary with over 15 years of experience. He has significant experience in the administration of ASX-listed companies, corporate governance and corporate finance. He was previously CFO of Highfield Resources Ltd and American Pacific Borates.
Vern Langdale - Country Manager, Finland
Vern Langdale is a mining veteran with 38 years of experience across various roles in mining projects and mines from many countries. He studied mining engineering at the Camborne School of Mines in Cornwall, England and started his career working in gold mines in the Goldfields of Australia. Langdale has been involved with building and commissioning mines often in challenging and remote locations in China, Indonesia and Saudi Arabia. In 2018, he moved to Finland with Nordic Gold. Langdale worked as director of operations for Endomines AB at its US and Finnish operations, where he provided support in the re-start of its mining operations. He was also mine manager at the Nordic Gold in Finland. He was the project manager for Jac Rijk Al Rushaid in Saudi Arabia, where he coordinated the work of a multi-lingual and multi-national workforce for the largest gold mining project of the Ma’aden Gold Group.
Pekka Tuomela - Sustainability & ESG Manager, Finland
Pekka Tuomela has a master of science in geology from the University of Oulu, Finland and an impressive career spanning over 20 years in exploration and mining projects in Finland and internationally, at all project phases. Tuomela has a solid understanding of the Finnish environmental and mining permitting regime, mining ESIAs and associated ESG/CSR sustainability practices including stakeholder communication. In addition, he advises on mineral intelligence and mineral economics policy and strategy matters.
Top 3 ASX Nickel Stocks of 2024
With its diverse applications in both technology and industry, nickel is a metal that will never go out of style.
Nickel is commonly used in alloys to create stainless steel, but more recently has found a modern use: batteries. As the electric vehicle trend gains steam, the base metal is in high demand for its role in lithium-ion batteries.
Nickel has encountered much volatility in the past few years. Prices spiked abruptly to a record US$100,000 per tonne in March 2022, prompting the suspension of trading on the London Metal Exchange.
The metal sank much lower in 2023, ending the year at around US$16,300 on the back of global economic uncertainties and a ramp up in production in top nickel producer Indonesia. However, improving global manufacturing data and supply concerns out of the Philippines sent prices for the metal up over the US$17,500 mark as of mid-April.
Against that backdrop, some ASX nickel companies are making moves. Here the Investing News Network has listed the top nickel stocks on the ASX by year-to-date gains. Data was gathered using TradingView's stock screener on April 11, 2024, and all companies had market caps above AU$10 million at that time. Read on to learn more about them.
1. Ardea Resources (ASX:ARL)
Year-to-date gain: 45.83 percent; market cap: AU$139.88 million; current share price: AU$0.70
Ardea Resources is developing its wholly owned Kalgoorlie nickel project in Western Australia, which includes the Goongarrie Hub deposit. The company has said the project “hosts the largest nickel-cobalt resource in the developed world.” It is currently working towards a planned definitive feasibility study (DFS).
A 2023 prefeasibility study for Goongarrie Hub shows an ore reserve of 194.1 million tonnes at 0.7 percent nickel and 0.05 percent cobalt, resulting in 1.36 million tonnes of contained nickel and 99,000 tonnes of contained cobalt. The study indicates an open-pit operation with a 40 year life and annual output of 30,000 tonnes of nickel and 2,000 tonnes of cobalt.
Last July, the company signed a memorandum of understanding to develop Goongarrie Hub with a Japanese consortium consisting of Sumitomo Metal Mining (TSE:5713), Mitsubishi (TSE:8058) and Mitsui (TSE:8031). On February 29, Ardea shared that it has agreed with the consortium on a DFS budget and the scopes of work for the study. Following the release, the company's share price climbed through March to hit a peak of AU$0.74 on March 18, and has remained elevated.
As of March 27, Ardea and the consortium were in the final stages of hashing out a final cooperative agreement .
2. Nickel Industries (ASX:NIC)
Year-to-date gain: 27.34 percent; market cap: AU$3.75 billion; current share price: AU$0.885
Nickel Industries has built a large portfolio of nickel-mining and downstream processing assets in Indonesia.
A major producer of nickel pig iron for the stainless steel sector, the company began its transition to a battery-grade nickel producer for the electric vehicle battery market in 2022. Nickel Industries holds 80 percent interests in four nickel rotary kiln electric furnace operations, as well as the Hengjaya nickel mine in Indonesia.
In October 2023, Nickel Industries reached a positive final investment decision to participate in the Excelsior nickel-cobalt high-pressure acid leach project in the Indonesia Morowali Industrial Park. The operation is expected to produce a total of 72,000 tonnes per year of contained nickel equivalent across three products: mixed hydroxide precipitate, nickel sulphate and nickel cathode. First production is slated to commence in 2025's fourth quarter.
In its 2023 annual report, released in late February, Nickel Industries shared record annual production of 131,126 tonnes of nickel metal, for a record group EBITDA of US$403.3 million. Shares of the company traded at AU$0.885 on April 11, the highest year-to-date price for the stock.
3. Legend Mining (ASX:LEG)
Year-to-date gain: 7.14 percent; market cap: AU$37.76 million; current share price: AU$0.015
Exploration-stage Legend Mining’s main focus is the Rockford nickel-copper project in Western Australia, a joint venture with prospector Mark Creasy's Creasy Group and IGO (ASX:IGO,OTC Pink:IPGDF).
Creasy Group and IGO are also the two largest shareholders in the company.
As the second quarter of 2024 begins, Legend Mining shares are up slightly from the start of the year. They saw a year-to-date high of AU$0.02 on February 12. According to the company's quarterly report, released on April 11, Legend’s 2024 field program for Rockford will include an extension of a high-power, fixed-loop electromagnetics survey at the Octagonal prospect. That should begin in May, and will be followed by seismic reprocessing for Octagonal, which is expected to be completed in June. Both will help to inform the selection of future drill targets on the property.
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.
Funds Received from Partial Sale of Codrus Shares
Blackstone Minerals Limited (ASX: BSX) (“Blackstone” or the “Company”) is pleased to announce that it has received A$0.9 million from the sale of 25 million Codrus Minerals Limited (ASX: CDR) (“Codrus”) shares through broker facilitated off market transfers.
The Company ended the March 2024 quarter with ~$4m of cash and cash equivalents and following the partial sell down of its investment in Codrus, has an estimated cash position of ~$4.9m.
Blackstone retains 10 million shares in Codrus and will maintain exposure to the portfolio of gold, uranium and rare earths projects.
Blackstone’s Managing Director Scott Williamson commented“the additional cash injection, further strengthens our cash position, coupled with the cost reduction initiatives announced earlier this year, gives the company are longer runway to advancing the joint venture partner search whilst finalising the studies and permitting activities at the Ta Khoa Project in Vietnam”.
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.
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
At the start of the year, experts were predicting that nickel prices would be rangebound in 2024.
With the first quarter in the books, that story seems to largely be playing out. After opening the year at US$16,600 per metric ton (MT) on January 2, nickel was stable during January and February. However, March brought volatility to the sector, with strong gains pushing the base metal to a quarterly high of US$18,165 on March 13.
Nickel's price rise failed to hold, and it once again dropped below the US$17,000 mark by the end of the month. Ultimately, the metal fell to US$16,565 on March 28, resulting in a slight loss for the quarter.
Indonesian supply dampens nickel prices
Lackluster pricing in the nickel market is largely the result of the metal's ongoing oversupply position.
The largest factor is elevated production from Indonesia, which is the top producer of the metal by far. The country produced 1.8 million MT of nickel in 2023, according to the US Geological Survey, representing half of global supply.
Indonesia's output has climbed exponentially over the past decade, and has been 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 (INN), Exploration Insights Editor Joe Mazumdar wrote, “The growth in electric vehicle (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.”
Despite the lower quality of material coming from Indonesia, the investment was made to shore up supply lines for Chinese battery makers and was earmarked for EV production. However, EV demand has waned through 2023 and into 2024 due to high interest rates, range anxiety and charging capacity, increasing nickel stockpiles.
A report on the nickel market provided by Jason Sappor, senior analyst with the metals and mining research team at S&P Global Commodity Insights, shows 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.
The lack of mined nickel, which helped push prices up, was caused by delays from a new government approval process for mining output quotas that was implemented by Indonesia in September 2023. The new system will allow mining companies to apply for approvals every three years instead of every year. However, the implementation has been slow, and faced further delays while the country went through general elections.
The nickel market found additional support on speculation that the US government was eyeing sanctions on nickel supply out of Russia. Base metals were ultimately not included in the late February sanctions, and prices for the metal began to decline through the end of March as Indonesian quota approvals accelerated.
Western nickel producers cut output on low prices
According to Macquarie Capital data provided by Mazumdar, 35 percent of nickel production is unprofitable at prices below US$18,000, with that number jumping to 75 percent at the US$15,000 level.
Mazumdar indicated that nickel pricing challenges have led to cuts from Australian producers like First Quantum Minerals (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.
Meanwhile, the nickel industry in French territory New Caledonia 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 materials trader Trafigura, which have significant stakes in nickel producers in the country, and has offered a 200 million euro bailout package for the nation's nickel industry. The French government set a March 28 deadline for New Caledonia to agree to its rescue package, but a decision had not yet been reached as of April 11.
Earlier this year, Glencore announced plans to shutter and search for a buyer for its New Caledonia-based Koniambo Nickel operation, which it said has yet to turn a profit and is unsustainable even with government assistance.
For its part, Trafigura has declined to contribute bailout capital for its 19 percent stake in Prony Resources Nouvelle-Caledonie and its Goro mine in the territory, which is forcing Prony to find a new investor before it will be able to secure government funding. On April 10, Eramet reached its own deal with France for its subsidiary SLN’s nickel operations in New Caledonia; the transaction will see the company extend financial guarantees to SLN.
The situation has exacerbated tensions over New Caledonia's independence from France, with opponents of the agreement arguing it risks the territory's sovereignty and that the mining companies aren’t contributing enough to bailing out the mines, which employ thousands. Reports on April 10 indicate that protests have turned violent.
While cuts from Australian and New Caledonian miners aren’t expected to shift the market away from its surplus position, 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 supply (8 percent CAGR) over the next several years, which should generate more market surpluses,” he said.
Miners seek "green nickel" premium for western products
In an email to INN, Ewa Manthey, commodities strategist at financial services provider ING, suggested western nickel producers are in a challenging position, even as they make 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,” she 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 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,” he said. Mazumdar went on to suggest that the biggest benefactors of this plan will be Australia and Canada, but noted that with prices remaining depressed, multibillion-dollar projects will struggle to get off the ground.
Western producer shope their material may eventually see a "green nickel" premium that plays into their focus on ESG. However, this idea hasn’t gained much traction. The London Metal Exchange (LME) believes the green nickel market is too small to warrant its own futures contract, and Mazumdar said much the same. “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,” he noted.
Even though there might not be much interest in green nickel on the LME, there are vocal proponents, including Wyloo’s CEO, Luca Giacovazzi. He sees the premium as being essential for the industry, and has said participants 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, 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 likely, the company would be the first Indonesian firm to be represented on the LME. There has been pushback from western miners on the basis of ESG and responsible resourcing challenges.
Investor takeaway
As the nickel market faces strong production from Indonesia, experts expect more of the same for prices.
“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 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.
Ramp Metals CEO Shares 2024 Drill Plans for Rottenstone Project in Saskatchewan
Ramp Metals (TSXV:RAMP) CEO Jordan Black discussed the company's veteran team of geologists and advisors, and its plans for drilling at its Rottenstone SW nickel-copper-platinum project in Northern Saskatchewan, Canada, to better understand the property’s subsurface geology.
The project's Rottenstone Eye structure is believed to be a major feeder chamber with conductive targets showing striking similarities to the geophysical response of the Nova-Bollinger deposit in Western Australia, which was discovered by geologist Dr. Mark Bennett and his team and later sold for AU$1.8 billion.
After Ramp discovered the similarities between the Rottenstone Eye and the Nova Eye structure at Nova-Bollinger, the company contacted Bennett to get his thoughts about its project. Bennett joined the team as a strategic advisor.
“He was surprised at the similarities between our project and his," Black said. "So we've built this world-class advisory team, including (Bennett) himself to help mentor us through this discovery process."
In addition to Bennett, Ramp also brought in veteran geologists Scott McLean and Richard Murphy. McLean has undertaken significant work at the Sudbury Nickel Camp in Ontario, Canada.
“We're a small team, but we have these great technical advisors on our team as well,” Black said.
The company plans to conduct an extensive ground geophysics program in the summer. The project is permitted for up to 2,000 meters of drilling, according to Black. Ramp plans to expand the drilling program to 5,000 or 10,000 meters to further define the resource under the surface.
Watch the full interview with Ramp Metals CEO Jordan Black above.
Disclaimer: This interview is sponsored by Ramp Metals (TSXV:RAMP). This interview provides information which was sourced by the Investing News Network (INN) and approved by Ramp Metalsin order to help investors learn more about the company. Ramp Metals is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Ramp Metals and seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.
MT Survey Outlines Large Undrilled Conductive Anomalies and an Extensive Host Horizon at BAGB
Pivotal Metals Limited (ASX:PVT) (‘Pivotal’ or the ‘Company’) is pleased to provide results and interpretation from the magnetotelluric (“MT”) survey conducted across the Alotta and Midrim areas of its 100% owned Belleterre Angliers Greenstone Belt “BAGB” projects in Quebec, Canada.
Highlights
- MT survey identifies large conductive anomalies below the shallow Midrim and Alotta discoveries, where historical intersection highlights include:
- 9.4m @ 3.5% Ni, 4.3% Cu and 4.6g/t 2PGM+Au from 56.6m in MR-17-011
- 4.3m @ 6.5% Ni, 5.2% Cu and 7.2g/t 2PGM+Au from 57.2m in MR-00-051
- 9.2m @ 2.6% Ni, 2.8% Cu and 3.6 g/t 2PGM+Au from 85.2m in ZA-18-082
- Extensive mafic intrusive contact ‘host horizon’ successfully mapped in 3D across the entire survey area.
- The prospectivity of this host horizon is validated by its coincidence with the high grade discoveries at Alotta and Midrim.
- Location and orientation of the interpreted structures further supports prospectivity of the targets identified.
- Small fraction of this host horizon has been tested by drilling at surface, and not drill tested at depth.
- Important targets now identified for follow-up work, which will include historic VTEM reinterpretation prior to drill testing.
- Survey area is only 5% of Pivotal’s 100% owned 157km2 BAGB project which hosts a large number of near surface, high grade intersections, showings, and geophysical anomalies requiring follow-up exploration.
Managing Director, Mr Fairhall said:
“This MT survey is an exciting enhancement in the understanding of the opportunity at BAGB. It supports the geological model that Midrim and Alotta are indicators of an extensive magmatic intrusion which acted as the plumbing system for these high grade surficial deposits. The survey allows us to map this prospective horizon and highlight prospective conductors as targets for sizeable accumulations of sulphide mineralisation.
It is clear that previous operators had a narrow focus on specific shallow anomalies, and that the property remains wide open for discovery potential – significantly accumulations at depth, but also for on strike surficial repeats of Midrim and Alotta.
We are advancing our target prioritisation to design a program to drill test these anomalies, alongside others on the remainder of the very prospective 100% owned claim package we have assembled at BAGB.”
Click here for the full ASX Release
This article includes content from Pivotal Metals, 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.
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