All Roads Lead to Canada Nickel While Bezos, Branson, Bloomberg, Dalio, and Gates etc. (Breakthrough Energy and KoBold Metals) search for ‘ethical’ cobalt and other battery metals utilizing their Google Maps-like platform, Elon Musk cuts a deal with Glencore.
Where is the largest cobalt mine located? Ironically, in the Democratic Republic of Congo - owned by Glencore. Tesla needs the feed to supply their Gigafactories in Berlin and Shanghai.
Musk should pay close attention to CNC’s rapid development. You can be sure Glencore will, for a few reasons now.
Then there is the latest development from the cash rich BHP.
Reuter’s reported on June 18th that BHP purchased a nickel project (Honeymoon Well) from Norilsk. The Russian giant has bigger sturgeon to fry back home - as they are the largest producer of nickel and palladium in the world.
Perhaps if they want to stay that way (easily), Norilsk may want to consider taking a run at CNC, before they report their Bankable Feasibility.
A simple comparative analysis (Honeymoon takeover) would indicate a current value close to $3 for CNC. This may change with the anticipated resource estimate update in late July, and a PEA by year end.
Price projections will only improve when the nickel market reaches higher targets.
Nickel Industry Updates:
- The future demand for high-purity class 1 nickel may increase to over 500 Kt in the next five years.
- Increased corporate activity from global nickel miners
- Talk of hidden stockpiling from China
- Stronger demand from stainless steel mills
- Vale plans a US$1.7B Voisey's Bay expansion plan to boost their nickel production.
“Kobold Metals hopes that its disruptive technology, called Machine Prospecting, will highlight some of the world’s richest, yet-to-be discovered mineral deposits.” Too late. CNC beat you to it.