RE:BHP to focus on cost cuts, patient on M&ANickel surplus to last a number of years. Have your factored biases in your sources Endzone?
Also remember when you said in 2020 that BHP opened an office in Toronto to be close to CNC?
Why did they focus their investments in Africa instead? https://www.reuters.com/markets/commodities/insg-forecasts-third-consecutive-year-nickel-surplus-andy-home-2023-10-05/
LONDON, Oct 6 (Reuters) - Global nickel production will outpace demand to the tune of 239,000 metric tons next year, according to the International Nickel Study Group (INSG).
It will be the third consecutive year of excess supply and the surplus will be the largest yet.
The INSG, which held the second of its twice-yearly meetings in Lisbon this week, estimates the market was in a 104,000-metric ton surplus last year with the figure set to rise to 223,000 metric tons this year.
https://www.reuters.com/markets/commodities/insg-forecasts-third-consecutive-year-nickel-surplus-andy-home-2023-10-05/
The cumulative forecast surplus of 566,000 metric tons over the three years is huge relative to the size of the nickel market. Global consumption this year is expected to come in at 3.2 million metric tons.
EndZonefor7 wrote: Van Jaarsveld backed BHP’s view that nickel sulphides remain the most attractive ore to own, because conversion costs to higher purities are cheaper than with laterites, despite a steady decline in nickel production costs in Indonesia, the world’s top supplier of nickel from laterite.
He acknowledged this year’s 36% slump in LME nickel prices and said the miner regularly reviews its commodity outlook.
“There has been a lot of (price) volatility and I think there has been more coming out of Indonesia than I think a lot of folks expected. As we sit here today, we haven’t changed our view on nickel,” he said.
For BHP to engage in a buyout, it would need to consider price, ease of jurisdiction, and opportunity to add value, among other factors, but then would need to think about which assets it would have to divest.
https://www.mining.com/web/bhp-to-focus-on-cost-cuts-patient-on-ma/