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Sherritt International Corp T.S

Alternate Symbol(s):  SHERF

Sherritt International Corporation is a Canada-based company engaged in the mining and refining of nickel and cobalt metals essential for the adoption of electric vehicles through hydrometallurgical processes. The Company is engaged in the production of high purity nickel and cobalt metals from lateritic ore. Its technologies group creates solutions for oil and mining companies around the world to improve environmental performance. The Company offers a range of products including Nickel, Cobalt, Fertilizers and Other Products. The Nickel products category includes standard grade, steel grade, and nickel powders. The Cobalt products category includes cobalt briquettes and cobalt powders. The Company’s Fertilizers product category includes anhydrous ammonia, granular ammonium sulfate, crystalline ammonium sulfate-super salt, and crystalline ammonium sulfate-standard grade. The Other products category includes sulfuric acid, zinc sulfide, and copper sulfide.


TSX:S - Post by User

Comment by CNG1978on Nov 22, 2022 9:06am
121 Views
Post# 35118211

RE:I never realized nickel alloys are a big market

RE:I never realized nickel alloys are a big market

Clean nickel flowing through Canada (including Wales and Norway) and Russia (including Finland) likely accounts for over 50% of the good stuff. Just a guess. The report you are pointing to focuses on nickel copper alloys but I am not sure if it includes the nickel super alloys. (Nickel-chromium-cobalt). Check out companies like Special Metals Corp (sold by INCO to Berkshire Hathaway in the 80's) and what they are forging at Huntington West Virginia and Wiggin Uk, which is physically located between Clydach Wales and Hefershford England. Haynes International, carpenter technology, etc. are others to have a look at.

70-80% of global nickel production reports to stainless. 18-8 stainless (18%Cr-8%) for example is mostly iron. Ferro nickel from Indonesia/Phillipines and Ferro Chromium from South Africa doesn't need to be clean because the end product is at least 70% iron. Not the case for industries that produce ultra pure super alloys.

About 6% of primary mined nickel production is coming from Canadian mines as opposed to 30% in Indonesia. However, there is not much difference between the $ value of finished production leaving each country.

Clean nickel for batteries, particularly ones that are blended with Li Hydroxide, is a new source of demand. MIxed hydroxide precipitate from Indonesia is part of the solution because with investment the material flow can be adapted to squeeze out more decent quality nickel products. 

It is still unclear to me where a lot of this new nickel in the western world is going to come from. This may create additional tension between existing nickel super alloy markets and battery cathode markets.

The miners hold all the cards and will take thier sweet time gradually boosting output and bringing on line new mines. Dragging it out for several years so they can maximize returns on investment.

Not sure we will see $ 6-7 dollar nickel again any time soon, barring a painful global recession. We may not see $20 dollar nickel either because the battery chemistries will change real quick. Current prices are incentivizing new supply but again, they are going to take thier sweet time.
 

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