Canada Nickel Company Inc V.CNC

Nickel price slumps as global production soars

[Cobalt]

First Quantum Minerals Ltd. started production at what is set to turn into Africa’s biggest nickel mine, furthering Zambia’s aim of becoming a key supplier of battery metals for the electric vehicle revolution.

The mine is expected to ramp up annual production to 32,000 tons of nickel over the next two years, according to First Quantum’s project manager Axel Kttgen. That would make Zambia the continent’s largest producer of the metal used in manufacturing batteries for EVs, the company said.

"Nickel set to flood the LME, turning metal squeeze into glut"

That dynamic is set to shift as a result of new plants in China and Indonesia to convert intermediate forms of nickel into metal that can be delivered on the LME, the first of which was approved by the exchange this week. The plants could add as much as 200,000 tons of nickel capacity by the end of next year, according to Macquarie. That could boost LME-deliverable supplies by 35% compared to 2022 levels.

A mining boom in Indonesia has caused a slump prices for those intermediate products. Nickel pig iron and ferronickel have been trading at around half the level of the LME price per ton of nickel, “something that is unprecedented in the history of the nickel market,” the Macquarie strategists including Jim Lennon wrote.

Now new plants are coming into production that will be able to convert those intermediates into LME-deliverable nickel metal. Led by Chinese companies like Tsingshan Holding Group Co., the largest nickel producer that was at the center of last year’s short squeeze, they will reduce China’s need to import nickel metal to close to zero by 2024, Macquarie said.

[EndZonefor7]

Guess you missed the memo about net zero carbon North American nickel that only qualifies for EV discounts. Zambian nickel won't cut it Paddy. Or maybe the high chromium supply to the North American steel industry. Or maybe the multinationals lining up for the carbon capture.  For a guy who said he wants to go away, you just won't leave. Getting boring... yawn. 

[Cobalt]

I think the market missed your memo Nickel down 38% YTD

[EndZonefor7]

The mine is for 3 to 4 years from now not tomorrow brainy one. Nickel/Commodities supercycle coming like all high inflation periods. Smart investors buy low, not sell low. CNC is a total gift. How much you buy today? 

[Cobalt]

I'm not buying a junior miner at any price when they are now talking 13% 10 year if they could not get financing when money was free good luck in 3 years with a 13% 10 year, someone look up how much over a ten year a miner pays up for financing. You have then number right Endzone you would have too No?

[Cobalt]

Oh we have a reference when the 10 year was around 4% the loan was around 3x 12% and dilution so at a 13% ... ? "The Company has arranged a US$12 million loan facility with Auramet, which is expected to close on or before September 15, 2023. The loan will be due on about December 15, 2023, will carry an interest rate of 1.00% per month, and be subject to a 2.3

[Cobalt]

Maybe we could go 8 over and not 3x so 21%?

[EndZonefor7]

13% and the world collapses. More fear mongering from those nutbars wanting to see financial destruction where nobody wins. Did you not learn anything 15 years ago or were you still in preschool? Let's see your end of the world portfolio for 13%. You have one right? 

[Cobalt]

Nutbars lol 13% was put on the table by the most watched bond guy out there and its not that far out of the question, Governments are are so far in debt they have trillions of debt paper coming to the markets and buyers have dried up, China nope selling Japan nope selling Fed nope selling. Bond vigilanties are once again sniffing around you remember them or where you in preschool? The very few

[CravingProfits]

Contrarial approach here Cobalt. But I have to admit I do not follow Tick Tock. Glta

[Cobalt]

How does that work? you do not follow Tick Tock but you think the most watched bond guy is on Tick Tock, say what?

[EndZonefor7]

You're the last anonymous poster I would take investment advice from. Your portfolio should have been in place the last 12 months since you are the top self described pro on SH. 

[EndZonefor7]

Scooped a few more down here. Oil down $4 a barrel. Don't look good for the doom and gloomers listening to the CNBC talking heads. 

[Cobalt]

ya them suckers in oil names pulling back from 9 year highs that we can agree on