Canada Nickel Company Inc V.CNC

Crux interview...Dec 05/23

[CravingProfits]

The Overlooked Answer to Nickel's Coming Supply Crisis - YouTube

Nickel prices did a 5% up and down round trip during the period - touched $15,500 level, then with a few days a nice little squeeze back up to $16,750 driven by Indo news I flagged was coming at the end of this month, and is now settling in either side of $16,500. Inventories continue to grind slowly highly – am surprised we haven’t seen some chunky LME deliveries during this period - may still see some going into year-end before we start moving higher early in the new year. Good signs from both the copper market and iron ore prices in China so still convinced should see good stuff coming in the first quarter. Indonesian government announcing pricing deals at a conference at the end of the month. With nickel prices coming off, seeing further convergence – sulphate was trading and NPI discounts continuing to narrow. When bouncing off a bottom as we are doing now. A good rule of thumb for prices - is long-term price typically is 90% of the cost curve and 70% of the cost curve for short-term. Big news this week “Entities of Foreign Concern” – qualifying for credits can’t have 25% or better interest from a Chinese company (or other unfavouable country/region). Benchmark highlighted that 82% of supply in Indonesia is MAJORITY Chinese controlled (is one of the key reasons why the US not rushing into an FT deal with Indonesia). LME also dodged a bullet with a lawsuit. They have some pretty broad language in their regulations that allows them to do pretty much whatever they want to “maintain an orderly market”. Despite cancelling trades being highly problematic on multiple fronts, it falls within their purview.