Canada Nickel Company Inc V.CNC

Pay attention to the LME nickel inventory levels.

[apapas1973]

The London Metals Exchange is the global central hub for metals trading. As we watch these nickel miners get caught up in market turmoil and day to day news, the warehouse nickel inventory levels after a steady increase over the last year has consistently and persistently so far come down about 7% from their highs reached just at the end of April 2021. We could soon be hitting critical levels. People are underestimating the commodity demand during this commodity cycle and if this continues, we could be setting up for a very rapid sling shot move up in nickel price alot sooner than everyone thinks. Although it would be really good for these miners initially, I have to be honest and say i wouldn't want that quick of a move. I personally believe it would be catastrophic and create demand destruction. That would ultimately lead to a collapse. We need a higher and sustainable price. Something the market can absorb. Of course life is not perfect and the big money dictates what's going to happen... Being that stainless steel is 70% of the nickel market and expected to be so, for about the next 2 years until EV sales ramp up, makes me wonder maybe Mark Selby really does know what he's doing. This is for all the doubters out there... Just to quote Mark. " Let the metal go where it wants" or something along those lines. Lol. Have a wonderful night and GLTA.

[EndZonefor7]

Great post apapas. Was going to delve into the nickel supply stuff this weekend but you just saved me a lot of time. Mark indeed appears to be ahead of the herd here with the new stainless direction. Definitely caught me off guard but looking at the multiples for stainless versus concentrate its a no brainer to go that route. Have to think he has serious interest in the steel plant to go that

[apapas1973]

There's so much info out there endzone. Please post anything you find. Ultimately it helps everyone make an informed investment decision... One question if you or anyone knows. Did Mark state what percentage of nickel he's allocating to EV compared to stainless steel? I can't recall.

[caramba71]

As far as I recall he didn't. The way he put it was 'let the metals go where they want to go' referring to the higher value US and European steel. I liked that. But he did mention (I think it was in the crux interview) that this could change in the next 2 years as ev demand picks up. He also hinted on the likelihood of additional interest from ev supply chain partners with the release

[apapas1973]

Actually you're right caramba but he didn't hint at possible deals. He flat out disclosed that specific organizations were waiting for this PEA and that he was sure this PEA was enough to progress discussions.

[caramba71]

You are correct.

[EndZonefor7]

apapas,  The Research Capital report stated 35% highgrade EV nickel, 12% standard grade, and 48% magnetite with 3% chrome for stainless. I am assuming the standard grade is for other uses other than EV's. 

[EndZonefor7]

I may have to stand corrected on that one apapas. I might have confused the concentrate percent versus the useage percentage of of each. Again, my first time in the nickel mining bizz. Lots to learn still.  It does make sense though that 50% would justify construction of a steel plant. I'll hold my thoughts on that one until it's clarified. 

[apapas1973]

Thanks for that info endzone. I would love to see a 50 /50 split. Actually even a 60/40 split in favour of stainless steel since that is where the easy profit is for now. As long as he can convert that quickly, to favour the EV market when the time comes.