My views on Sherritt haven't changedI wrote this in 2017 when the share price was about $1.50. That was 6 years ago, and now the share price is at .46 cents. I remain a master strategist.
There is very little of value posted on this board and that includes the entertaining but speculative observations of this international man of mystery Collinswhatever and this BBD Trainster who writes like he is some kind of white gangster rapper. Here is what you can know. Nickel is a small market and therefore a volatile market. Nickel prices have been and will continue to be volatile. On average nickel demand grows by 2% per annum and has for 50 years. There is no significant new capacity to be added until the nickel price is $9+. The new applications for nickel in EV and grid storage are interesting and will ultimately become a significant source of demand FOR CLASS 1 NICKEL PRODUCERS. The expectations on EV penetration are all over the place and perhaps optimistic, but who knows. Nickel inventories are high by historical standards but perhaps this is the new normal. I don't know that producers are keeping the same level of inventory at their mine sites as they have in the past. As far as Sherritt goes, the original Sherritt business which is still intact has in the past supported an approximate $20 share price (2006-2007). Nobody is suggesting that this cycle will be as extreme as the last but certainly a share price of many multiples its current price ($8-10) is possible at the next cyclical peak. Talk of a takeover are unattractive even at a big premium to the current share price and you would simply be handing over an opportunity for significant capital increases to a third party. Before year end we can expect to see the final closing of the Ambatovy deal, news of Block 10 drilling results, and perhaps the granting of an incremental block. None of this is "news" but analysts are often guilty of jumping on a situation only once the horse has already left the gate. I think these developments will drive a higher share price, but it is still early innings in the nickel cycle, and investors will need to hold their shares for a while and through volatility to reach the promised land.