Miners seek answers: Why do nickel prices 'suck'? “Oh, it’s brutal,” said Mark Selby, chief executive of Canada Nickel Co. Inc., which aims to develop a nickel mine in Crawford, Ont.
He said it’s frustrating because behind the scenes, executives from automotive and battery companies expect the demand for battery metals such as nickel will be “bonkers.” Those companies are putting their capital behind such projections, he added.
And Canada Nickel inked a deal in January with Samsung SDI Co. Ltd., a South Korean battery company, which agreed to invest US$18.5 million in Selby’s company, with separate agreements for Samsung to purchase up to 10 per cent of its proposed mine for US$100.5 million, plus rights to take nickel from the mine.
Despite the investment, Canada Nickel’s share price has declined 60 per cent since December 2021 to $1.46.
Selby said retail investors in particular are underestimating the long-term demand for nickel, and placing too much emphasis on short-term trends, such as the flagging sales of electric vehicles or current commodity prices.
https://financialpost.com/commodities/mining/why-do-nickel-prices-suck-miners-seek-answer/wcm/52c070f4-8660-45fd-8722-72b5a20a147b/amp/