Nickel Miners News For The Month Of June 2024

HT Ganzo/iStock via Getty Images Welcome to the nickel miners news for June. The past month saw nickel prices fall significantly. Nickel price news As of June 28, the nickel spot price was USD 7.67/lb, down from USD $9.19/lb last month. LME shows the price at USD $16,830/tonne. Nickel inventory at the London Metals Exchange [LME] was higher the past month at 93,864 tonnes (83,634 tonnes last month). Nickel spot price 5 year chart – Current price = USD $7.67/lb Mining.com Nickel demand vs. supply chart INSG forecasts a third consecutive year of nickel oversupply in 2024 (source) Reuters courtesy INSG Benchmark Mineral Intelligence forecasts deficits for lithium, nickel & cobalt to increase from 2027 onwards (source) BMI Trend Investing v IEA demand forecast for EV metals (IEA) Trend Investing & the IEA 2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 – Increases Of Lithium 13x to 42x, Graphite 8x to 25x, Cobalt 6x to 21x, Nickel 7x to 19x, Manganese 3x to 8x, Rare Earths 3x to 7x, and Copper 2x to 3x (source) IEA 2022 – IEA forecasts 60 new nickel mines needed by 2030 IEA BMI forecasts we need 330+ new EV metal mines from 2022 to 2035 to meet surging demand – 72 new 45,500tpa nickel mines needed by 2035 BMI Lithium & Nickel are the two “high importance to energy” critical materials in the medium term (2025-2035) (source – page 29) DoE Nickel Market News On June 11, East Asia Forum reported: Australia gets nickel-and-dimed by Indonesian downstreaming. Despite soaring nickel prices between 2016 and 2022, Australian nickel miners, such as Wyloo Metals and BHP, have struggled due to a surge in market supply from Indonesia, the world’s largest nickel reserve holder, leading to a fall in nickel prices. While Australian miners argue for an ESG price premium based on higher quality and lower environmental costs, the nickel production landscape is becoming increasingly influenced by geopolitics and industrial policy, rendering these market-based solutions ineffective. On June 14, Bloomberg reported: “How Indonesia Became the Biggest Player in the Nickel Market. With a little help from China.” On June 19, Carbon Credits reported: Nickel price drops: A temporary setback or a long-term trend?.. Looking forward, analysts at S&P Global Commodity Insights predict that the global primary nickel market will continue to face challenges driven by oversupply conditions throughout the remainder of the year. Despite bullish sentiments, the underlying imbalance between supply and demand is expected to restrain nickel prices… they forecast that total primary nickel stocks, measured in terms of weeks of consumption, will reach a 4-year high in 2024…the long-term outlook for nickel remains positive, primarily due to its critical role in the energy transition…While prices may remain subdued in the short term due to oversupply, the medium to long-term outlook suggests potential price recovery as demand catches up with supply. S&P Global Market Intelligence forecast nickel oversupply to 2027, then a ‘primary’ nickel deficit starting in 2028 (as of June 2024) (source) S&P Global On June 27, Financial News Media Group reported (Precedence Research): Global nickel mining market expected to reach $94 billion by 2033 as demand surges…the global nickel mining market size, which surpassed USD 50.07 billion in 2023, is projected to be worth around USD 94.43 billion by 2033, expanding at a CAGR of 6.60% from 2024 to 2033. The report said: “The surge in electric vehicle [EV] production and renewable energy projects further propels the demand for nickel, a crucial component in batteries and clean energy technologies. With expanding economies, strategic investments in mining infrastructure, and a burgeoning urbanization trend, Asia-Pacific remains a key player, driving substantial growth and influencing the dynamics of the global nickel mining market. Nickel Company News Producers Norilsk Nickel On June 5, Nornickel announced: Robots and spider cranes help upgrade Nornickel’s flagship facility. The Nadezhda Metallurgical Plant (NMP), a key enterprise in Nornickel’s Norilsk division, is undergoing extensive upgrade and repair program. Vale SA (NYSE:VALE) Vale Voisey’s Bay Mine is a key Canadian and global source of nickel. Vale plans a refinery at Bécancour in Québec to supply GM with battery grade nickel sulfate with deliveries targeted to commence in H2 2026. On May 27, Vale announced: “Vale and BNDES launch call for proposals for investment fund focused on strategic minerals projects.” On June 20, Mining.com reported: Vale unveils $3.3 billion plan to boost copper and nickel output. Vale SA plans to spend as much as $3.3 billion on improvements at its mining operations in Brazil and Canada to boost copper and nickel production capacity over the next four years. The Brazilian mining giant sees the potential to expand production capacity to about 500,000 tons of copper by 2028 mainly through improvements to its Salobo and Sossego mines in Brazil, Vale said in its latest estimates for its base metals unit. Vale produced 321,000 tons of the wiring metal last year. Nickel also gets a capacity lift. On June 25, Vale announced: “Vale prices US$1 billion notes due 2054… The Notes will bear a coupon of 6.400% per year, payable semi-annually.” On June 27 Vale announced: Vale provides an update on operating licenses for Onça Puma and Sossego mines…The respective licenses are expected to be reinstated within 48 hours by the environment authority. After that, Vale will proceed with the operational resumption processes as soon as possible. Glencore [HK:805] [LSE:GLEN] (OTCPK:GLCNF) On May 22, Australian Mining reported: Sandvik, Glencore to give BEV batteries a second life. Sandvik is set to commence a pilot project to deploy a second-life battery energy storage system at select Glencore operations. On May 29, Glencore announced: “Results of 2024 AGM.” On June 12, Mining.com reported: Indonesia nickel firm in talks with Glencore ahead of 2025 listing. Indonesian nickel company PT Ceria Nugraha Indotama is planning an initial public offering [IPO] in the first half of 2025 and is in talks to secure a stake sale to Glencore PLC ahead of the listing as Ceria sets out to build an $8 billion nickel complex. The complex, which will encompass 11 processing plants, including two high-pressure acid leaching (HPAL) plants, will produce nickel products used in electric vehicle batteries… Construction for that plant is expected to begin by end-2024. BHP Group [ASX:BHP] (NYSE:BHP) BHP’s Nickel West (includes the Mt Keith nickel mine in Australia) has a Measured and Indicated Resource of 4.1Mt contained nickel with a Total Resource contained nickel of 6.3Mt, with an average grade of 0.58% Ni in sulphide ore. Nickel West produced 80 kt of nickel in FY 2020. Stage 1 production of the Kwinana Nickel Refinery is aimed to be 100ktpa nickel sulphate. On May 27, BHP Group announced: “BHP and Rio Tinto collaborate on battery-electric haul truck trials in the Pilbara.” On June 12, BHP Group announced: “BHP set to receive first CAT Early Learner battery-electric haul truck.” April 2024 – BHP to decide on future of nickel business by August Anglo American [LSX:AAL] (OTCPK:AAUKF) On May 30, InDaily reported: “BHP walks away from $74 billion Anglo American takeover bid.” Eramet [FRA:ERA] (OTCPK:ERMAY) On June 24, Eramet announced: Eramet and BASF decide against joint investment in a nickel-cobalt refining complex in Indonesia…Eramet will continue to evaluate potential investments in the nickel electric vehicle battery value chain in Indonesia…Eramet remains focused on sustainably optimizing the resource potential of Weda Bay mine to supply ore to local nickel producers… Sherritt International (OTCPK:SHERF)[TSX:S] On June 11, Sherritt announced: “Sherritt Releases its 2023 Sustainability Reports.” IGO Limited [ASX:IGO] (OTC:IIDDY) IGO stated on their website: “In June 2024, Cosmos was transitioned into care and maintenance. IGO intends to protect the optionality to restart Cosmos in the future.” On June 24, Argonaut reported: IGO Limited (IGO) – Nickel the dominant earnings driver in FY25…The weaker spodumene price outlook has significantly increased the importance of Nova to IGO’s earnings…the near-term cuts to our earnings forecasts and the weaker spot price has driven an 8% cut to our price target to A$8.00. Sumitomo Metal Mining Co. (OTCPK:SMMYY) On May 29, Sumitomo Metal Mining announced: “Fiscal Year 2023 (99th Term) General Meeting of Shareholders held on June 26, 2024​.” On June 4, Sumitomo Metal Mining announced: “Ceremony for the arrival of the first shipment of copper concentrate from the Quebrada Blanca Copper Mine.” Nickel 28 Capital Corp. [TSXV:NKL] [GR:3JC] On June 3, Nickel 28 announced: Receipt of management cease trade order in response to voluntary application…The MCTO prohibits the Chief Executive Officer, Chief Financial Officer and former Chief Executive Officer of the Company from trading in the securities of the Company for so long as the Annual filings are not filed. On June 18, Nickel 28 announced: “Settlement with former Chief Executive Officer.” On June 27 Nickel 28 reported: “Nickel 28 provides Second Status Report on Annual Financial Statements and MD&A.” Nickel Industries Limited [ASX:NIC] (OTCPK:NICMF) On June 14, Nickel Industries Limited announced: Clarification on RKEF permitting review…Mr Arif has confirmed directly to Nickel Industries that: “The Ministry of Energy and Mineral Resources will make careful evaluation for RKEFs that consume high grade nickel ore and will stop new permits for these RKEFs and RKEFs that are in construction or feasibility stage if no progress has been made, not for existing RKEF permits.” On June 27 Nickel Industries Limited announced: “2023 Sustainability Report.” Other nickel producers Tsingshan Holding Group Co Ltd (private, Chinese-owned stainless steel producer with large nickel mines in Indonesia), First Quantum Minerals [TSX:FM] (OTCPK:FQVLF), Franco/Nevada [TSX:FNV], MMG [HK:1208], South32 [ASX:S32], Lundin Mining [TSX:LUN], Nickel Asia Corporation [PSE:NIKL], Platinum Group Metals’ [TSX:PTM] (PLG). Nickel juniors Poseidon Nickel [ASX:POS] (OTC:PSDNF) On May 30, Poseidon Nickel announced: “Low cost, near surface exploration targets identified at Black Swan.” Highlights include: “Validation of two near surface high grade nickel exploration targets at Black Swan. Further reduction of annualised operating costs by up to $1.0 million through optimised care and maintenance at Black Swan, bringing total annualised cost reductions up to $5.8 million.” On June 6, Poseidon Nickel announced: “Gold and nickel targets at Windarra.” Highlights include: Multi-commodity assessment of Windarra has identified promising gold in soil anomalies in addition to the recently identified nickel sulphide channels. “Newly identified nickel sulphide channels reported in February 2024 could host a new nickel sulphide deposit close to surface. Poseidon Nickel State Agreement was a key deterrent to carrying out sustained exploration for other commodities over a 50-year period: “The “Poseidon Nickel State Agreement Act 1971”, which only considered the mining of nickel ores, was successfully terminated when the “Poseidon Nickel Agreement Amendment (Termination) Bill 2021” was passed by the WA State Government in early 2022. The subsequent transition of the Windarra tenure to mining leases resulted in Poseidon having the right to mine for all metals, minerals and processing of tailings, subject to normal permitting conditions. Next steps include a staged soil program, focusing on newly identified gold anomalies and nickel sulphide channels, (using modern day technologies, assaying for a full range of elements across the portfolio) and shallow reconnaissance drilling.” Talon Metals [TSX:TLO] (OTCPK:TLOFF) Tamarack – (JV with Rio Tinto) Tamarack is a high grade nickel-copper-cobalt project located in Minnnesota, USA, with considerable exploration upside. Talon Metals owns a 51% project share, with potential to further earn-in to a 60% share by 2026. On June 4, Talon Metals announced: “More Nickel in the USA: Talon Metals extends nickel-copper mineralization in the Raptor Zone by 110 meters.” Highlights include: “Talon extends nickel-copper mineralization in the Raptor Zone from 250 meters of strike to over 350 meters (see Figure 2). Talon intends to continue exploration in the Raptor Zone, as the mineralization is open in all directions.” On June 18, Talon Metals announced: “More nickel in the USA: Talon Metals commences drilling in Michigan’s Upper Peninsula.” Highlights include: “…Strategic Location: Talon’s land package in Michigan is located within 1.7 miles (2.8 km) of the high-grade Eagle Nickel Mine, the only active nickel mine in the USA, and just 0.4 miles (0.6 km) from the Humboldt Mill. Initial Geophysics Completed and Drilling Started at the Roland Target: In May 2024, ahead of schedule, Talon commenced geophysical surveys at three high priority targets. Following this initial geophysical work, Talon has now commenced exploration drilling at the Roland Target (see Figures 1 and 2). High-Grade Potential: Talon will be following up on historic drilling of over 80 holes across the Talon Michigan Nickel-Copper Properties, that resulted in grades similar to the high-grade Eagle Mine and the Tamarack Nickel Project. Nearly 50% funded by the US Department of Defense (DOD): In September 2023, Talon and the US Department of Defense announced that the US Department of Defense would provide US$20.6-million for accelerated exploration in Minnesota and Michigan, nearly doubling Talon’s exploration budget…” Garibaldi Resources [TSXV:GGI] [GR:RQM] [LN:OUX6] (OTCPK:GGIFF) No news for the month. Queensland Pacific Metals [ASX:QPM] No significant news for the month. Premium Nickel Resources Corporation [TSXV:PNRL](OTCQX:PNRLF) On June 5, Premium Nickel Resources Corporation announced: Premium Nickel Resources Ltd. announces fully-committed $15 million private placement of units…at a price of C$0.78 per Unit (the “Issue Price”) for aggregate gross proceeds of approximately C$15 million (the “Offering”). On June 10, Premium Nickel Resources Corporation announced: Premium Nickel Resources Ltd. announces upsize to previously- announced non-brokered equity financing. Aggregate $27.5 million non-brokered equity financing after upsize… On June 21, Premium Nickel Resources Corporation announced: Premium Nickel Resources announces closing of second tranche of private placement of units for total offering of C$27.5 million. On June 26, Premium Nickel Resources Corporation announced: Premium Nickel reports 52.45 metres of 2.02% NiEq or 3.59% CuEq (1.26% Ni, 1.17% Cu, 0.06% Co) & 35.60 metres of 2.45% NiEq or 4.35% CuEq (1.54% Ni, 1.38% Cu, 0.08% Co) at Selebi North Underground. “These assays are the last underground drill holes to be included in the first Selebi National Instrument 43-101 compliant Mineral Resource Estimate (“MRE”). The MRE will incorporate drilling data from both Selebi North and Selebi Main and is expected in the coming weeks. The delay is predominantly due to the lag time in receiving the assays from drill hole SNUG-24-105.” – CEO, Keith Morrison Canada Nickel Company [TSXV:CNC](OTCQX:CNIKF) On June 4, Canada Nickel announced: “Canada Nickel completes drill program at Deloro with resource estimate expected in July.” Highlights include: “2024 drilling increases mineralized footprint by 50% to 1.2 kilometres long by up to 700 metres wide. Deloro is located just 8 kilometres south of Timmins with direct road and powerline access and shallow overburden averaging less than 9 metres thick. 11 holes successfully completed including DEL24-12 with 0.26% nickel over 431 metres and DEL24-17 with 0.27% nickel over 293 metres. Resource estimate is underway and expected to be completed in July 2024.” On June 24, Canada Nickel announced: Canada Nickel provides corporate update and announces US$15 million loan facility with Auramet International, Inc. Canada Nickel Company Inc. Ardea Resources [ASX:ARL] (OTCPK:ARRRF) In total, Ardea has 6.1Mt of contained nickel and 386,000t of contained cobalt at their KNP Project near Kalgoorlie in Western Australia. Ardea is also exploring for gold and nickel sulphide on their >5,100 km2 of 100% controlled tenements in the Eastern Goldfields region of Western Australia. On June 13, Ardea Resources announced: Ardea receives $1.1 million R&D rebate…The quality of the KNP Goongarrie Hub R&D has been recognised with a $1.1 million R&D Incentive Rebate for the 2023 financial year, from the Australian Federal Government… Centaurus Metals Limited [ASX:CTM] (OTCQX:CTTZF) Centaurus Metals is an Australian-based minerals exploration company focused on the near-term development of the Jaguar Nickel Sulphide Project, in Northern Brazil. No significant news for the month. Alliance Nickel [ASX:AXN] (formerly GME Resources) No significant news for the month. Widgie Nickel [ASX:WIN] No significant news for the month. Sama Resources [TSXV: SME] [GR;8RS] (OTCPK:SAMMF) The Samapleu-Grata Nickel-Copper Project is a 60/40 joint venture between Ivanhoe Electric and Sama Resources. No news for the month. Murchison Minerals [TSXV:MUR] (OTCQB:MURMF) No nickel related news for the month. Power Nickel [TSXV:PNPN] (CMETF) On June 3, Power Nickel announced: “Power Nickel partners with Karbon-X to offset 30,000 meters of drilling.” On June 4, Power Nickel announced: Power Nickel Lion Zone delivers hole assays from 2.60-17.90% CuEq with hole 59 delivering 1.91 g/t gold, 73.48 g/t silver, 9.88% copper, 6.23 g/t palladium, 4.56 g/t platinum, and 0.49% nickel over 5.59m… On June 10, Power Nickel announced: Power Nickel Commences 8,000 Meters Summer Drill Program…at the polymetallic Lion Zone on its Nisk Property in Nemaska, Quebec. On June 13, Power Nickel announced: Mining all stars back up to $20 million investment in Power Nickel. Power Nickel Inc. (the “Company” or “Power Nickel”) (TSXV: PNPN) (OTCBB: PNPNF) (Frankfurt IVV), is pleased to announce that it plans to conduct a flow-through offering for gross proceeds of up to $20 million, through the issuance of up to 16,000,000 flow-through units (the ” FT Units”) at a price of $1.25 per FT Unit. Each FT Unit is comprised of one flow-through common share and one-half share purchase warrant (each a “Warrant”), with each Warrant exercisable to purchase one common share at a price of $1.25 per common share for three years from the date of issuance. Each flow-through common share will qualify as a flow-through share for purposes of the Income Tax Act ( Canada) (“ITA”). Industry legend Rob McEwen has joined with several other leading mining investors in providing the investor buyback of the proposed $20 million $1.25 per Unit Flow Through financing for Power Nickel. On June 24, Power Nickel announced: Over-subscribed $20 million flow-through offering closed with the backing of leading mining investors Robert Friedland, Rob McEwen, CVMR, and Terra Capital… The Metals Company (TMC) On June 12, TMC the metals company announced: “TMC and SGS produce world-first cobalt sulfate from deep-seafloor polymetallic nodules.” Other juniors Artemis Resources [ASV:ARV], Australian Mines [ASX:AUZ], Azure Minerals [ASX:AZS] (OTCPK:AZRMF), Blackstone Minerals [ASX:BSX], Cassini Resources [ASX: CZI], Class 1 Nickel and Technologies Ltd. [CSE:NICO] (OTCQB:NICLF), Electra Battery Materials [TSXV:ELBM] (ELBMF), Electric Royalties [TSXV:ELEC], EV Nickel [TSXV:EVNI] (OTCPK:EVNIF), Flying Nickel Mining Corp. [TSXV:FLYN], FPX Nickel [TSXV:FPX], Grid Metals Corp [TSXV:GRDM], Go Metals [CSE:GOCO] (OTCPK:GOCOF), Huntsman Exploration [TSXV:HMAN] (OTCPK:BBBMF), Inomin Mines [TSXV:MINE], Jervois Global Limited [ASX:JRV] (OTCQB:JRVMF), New Age Metals [TXV:NAM], Nickel Creek Platinum [TSX:NCP] (OTCQX:NCPCF), Nordic Nickel Limited [ASX:NNL], Pancontinental Resources Corporation [TSXV:PUC], Polymet Mining [TSX:POM], Renforth Resources [CSE:RFR] (OTCQB:RFHRF), Rox Resources [ASX:RXL], S2 Resources (ASX:S2R), Stillwater Critical Minerals [TSXV:PGE] (OTCQB:PGEZF), Sunrise Energy Metals [ASX:SRL] (OTCQX:SREMF), Surge Battery Metals Inc. [TSXV:NILI] [FRA:DJ5C] (OTCQX:NILIF), Talisman Mining Ltd. [ASX:TLM], Tartisan Nickel Corp. [CSE:TN] (OTCQB:TTSRF), Transition Metals [TSXV:XTM], URU Metals Ltd. [LSE:URU] [GR:NVRA], Wall Bridge Mining [TSX:WM], and Zeb Nickel Corp. [TSXV:ZBNI] (OTCQB:ZBNIF). Note: Some of the above companies are covered in the Cobalt monthly news. Nickel miners ETF Below is the Sprott Nickel Miners ETF. You can view the top holdings here. Sprott Nickel Miners ETF (NIKL) – One year price chart – Price = US$13.11 NIKL) – One year price chart” contenteditable=”false” loading=”lazy”> Seeking Alpha Conclusion Nickel spot prices were significantly lower the last month. Highlights for the month were: Australia gets nickel-and-dimed by Indonesian downstreaming. S&P Global Market Intelligence forecasts short term nickel surpluses to 2027, then in 2028 a primary nickel deficit. Precedence Research: The global nickel mining market size, which surpassed USD 50.07B in 2023, is projected to be worth around USD 94.43B by 2033, expanding at a CAGR of 6.60% from 2024 to 2033. Vale unveils $3.3 billion plan to boost copper and nickel output. Vale’s Onça Puma and Sossego mines’ licenses are expected to be reinstated. PT Ceria Nugraha Indotama is planning an IPO in H1 2025 and is in talks to secure a stake sale to Glencore ahead of the listing as Ceria sets out to build an $8B nickel complex in Indonesia. BHP and Rio Tinto collaborate on battery-electric haul truck trials in the Pilbara. BHP walks away from $74 billion Anglo American takeover bid. Eramet and BASF decide against joint investment in a nickel-cobalt refining complex in Indonesia. IGO Limited – Argonaut sees nickel from Nova Mine as the dominant earnings driver for IGO in FY25. Nickel 28 announced a settlement with former Chief Executive Officer. Talon Metals extends nickel-copper mineralization in the Raptor Zone by 110 meters, to over 350 meters. Premium Nickel Resources raises C$27.5 million. Reports 52.45 metres of 2.02% NiEq or 3.59% CuEq (1.26% Ni, 1.17% Cu, 0.06% Co) & 35.60 metres of 2.45% NiEq or 4.35% CuEq (1.54% Ni, 1.38% Cu, 0.08% Co) at Selebi North Underground. Power Nickel Lion Zone hole 59 – 1.91 g/t gold, 73.48 g/t silver, 9.88% copper, 6.23 g/t palladium, 4.56 g/t platinum, and 0.49% nickel over 5.59m. Over-subscribed $20 million flow-through offering closed. TMC and SGS produce world-first cobalt sulfate from deep-seafloor polymetallic nodules. As usual, all comments are welcome. Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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