TLOFF - Nickel Miners News For The Month Of August 2023

2023-08-31 11:38:17 ET

Summary

• Nickel spot prices were lower the last month.
• Nickel market news - BHP: "Turning to the longer term, we believe that nickel will be a substantial beneficiary of the global electrification mega–trend."
• Nickel company news - Glencore announces US$1.2 billion share buyback program. Horizonte Minerals' Araguaia Nickel Project now 65% complete.
• Talon Metals drills 101.71 meters (333 feet) of 3.04% nickel equivalent at the Tamarack Nickel Project. Canada Nickel confirms discovery at Mann Northwest Property. Widgie Nickel new significant nickel discovery south of the existing Gillett Resource.

Welcome to the nickel miners news for August.

The past month saw lower nickel prices and solid progress from the nickel juniors.

Nickel price news

As of August 31, the nickel spot price was USD 9.23 , lower than USD 9.71 last month. LME shows the price at USD 20,230/tonne . Nickel inventory at the London Metals Exchange [LME] was lower the past month at 37,206 tonnes (37,542 tonnes last month).

Nickel spot price 5 year chart - Current price = USD 9.23/lb

Nickel demand v supply chart

Nickel Business Environment: Supply-Demand Balance (as of May 2023) ( source )

Trend Investing v IEA demand forecast for EV metals ( Trend Investing ) ( IEA )

2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 - Increases Of Lithium 13x to 42x, Graphite 8x to 25x, Cobalt 6x to 21x, Nickel 7x to 19x, Manganese 3x to 8x, Rare Earths 3x to 7x, and Copper 2x to 3x ( source )

2022 - IEA forecasts 60 new nickel mines needed by 2030

BMI forecasts we need 330+ new EV metal mines from 2022 to 2035 to meet surging demand - 72 new 45,500tpa nickel mines needed by 2035

Lithium & Nickel are the two 'high importance to energy' critical materials in the medium term (2025-2035) ( source - page 29)

Nickel Market News

On August 30 Reuters reported :

Indonesian nickel smelters turn to Philippines for ore as local supply tightens. Nickel smelters in top producer Indonesia are making rare purchases of ore from the Philippines to ease tight supplies, people familiar with the matter said, upending trade flows of the raw material and pushing up costs across the supply chain. Jakarta recently delayed the issuing of mining quotas and suspended operations at a key site of state miner Aneka Tambang (ANTM.JK) (Antam) after an investigation into corrupt practices in issuing mining allowances.

On August 30 Fastmarkets reported :

Abaxx to launch nickel sulfate futures by year-end, president says | Hotter Commodities...... “We’re internally and operationally ready, with the goal of becoming the benchmark contract for nickel sulfate,” Daniel McElduff said. “We also plan to launch other new battery metals products.”

Nickel Company News

Producers

Vale SA ( VALE )

Vale Voisey's Bay Mine is a key Canadian and global source of nickel. Vale plans a refinery at Bécancour in Québec to supply GM with battery grade nickel sulfate with deliveries targeted to commence in H2 2026.

On August 7 Fastmarkets reported :

Vale sells stakes in Energy Transition Metals business; deals must face Canada scrutiny......The transaction was expected to close by the first quarter of 2024......Vale said that these partnerships would help to drive VBM’s “significant potential” for production increases, to 900,000 tonnes per year of copper from around 350,000 tpy, and to more than 300,000 tpy of nickel from about 175,000 tpy.

Norilsk Nickel ((MNOD)) ( NILSY )

On July 24, Norilsk Nickel announced :

Nornickel announces consolidated production results for 1h 2023.....In 2Q 2023, consolidated nickel output decreased 4% quarter-on-quarter (q-o-q) to 45 kt, practically all of which were produced from the Company’s own Russian feed.....In 1H 2023, total nickel output decreased 9% year-on-year (y-o-y) to 91 kt.....

On August 2, Norilsk Nickel announced : "Nornickel reports 1H 2023 interim consolidated IFRS financial results." Highlights include:

• "Consolidated revenue decreased 20% y-o-y amounting to USD 7.2 billion following the decline of prices for all key metals despite higher physical sales of PGMs and gold.
• Successful diversification of metal sales resulted in Asia becoming the largest market with a revenue share of almost 50% for the first time in the Company’s history.
• EBITDA decreased 30% y-o-y to USD 3.4 billion owing to lower revenue while EBITDA margin remained at healthy 47%.
• Cash operating costs decreased 12% y-o-y to USD 2.7 billion....."

BHP Group [ASX:BHP] ( BHP )

BHP's Nickel West (includes the Mt Keith nickel mine in Australia) has a Measured and Indicated Resource of 4.1Mt contained nickel with a Total Resource contained nickel of 6.3Mt , with an average grade of 0.58% Ni in sulphide ore. Nickel West produced 80 kt of nickel in FY 2020. Stage 1 production of the Kwinana Nickel Refinery is aimed to be 100ktpa nickel sulphate.

On July 31, BHP Group announced :

Another step in Nickel West's decarbonisation journey.....Construction on Flat Rocks Wind Farm Stage 1 began in mid-2022, and it is now one step closer to completion with installation starting for the 18 wind turbines of the greenfield wind farm around 264 kilometres south of Perth.....

On August 22, BHP Group announced : "BHP results for the full year ended 30 June 2023." Highlights include:

• "Underlying attributable profit of US$13.4 bn at 28.8% ROCE.
• Underlying EBITDA of US$28.0 bn. Underlying EBITDA margin of 54%....
• Full year dividends of 170 US cents per share, a 64% payout ratio. Final dividend of 80 US cents per share.
• Net operating cash flow of US$18.7 bn.
• US$13.1 bn of investments in the period: US$7.1 bn of capital and exploration expenditure. US$5.9 bn acquisition of OZ Minerals in May 2023.
• Free cash flow of US$5.6 bn vs. dividends declared of US$8.6 bn.
• Net debt of US$11.2 bn (FY22: US$0.3 bn), includes US$7.0 bn relating to the acquisition of OZ Minerals. Expected to stay at upper end of US$5 -15 bn target range in the near term."

On August 22, BHP Group announced :

BHP's economic and commodity outlook. Financial Year 2023...Turning to the longer term, we believe that nickel will be a substantial beneficiary of the global electrification mega–trend and that nickel sulphides will be particularly attractive. This is due to their relatively lower cost of production of battery–suitable class–1 nickel than for laterites, as well as the favourable position of integrated sulphide operations on the GHG emissions intensity curve.

BHP's Nickel West operations

Glencore [HK:805] [LSE:GLEN] ( GLCNF )

On August 8, Glencore announced :

2023 half-year report...“Against the backdrop of a normalisation of commodity market imbalances and volatility, primarily across the energy spectrum, our Marketing and Industrial segments posted a healthy earnings performance, delivering Group Adjusted EBITDA of $9.4 billion, cash generated by operating activities of $8.4 billion and Net income attributable to equity holders of $4.6 billion...

On August 8, Glencore announced :

Share buy-back program...of an aggregate value of USD1.2 billion (the "Programme"), subject to market conditions, with intended completion by the time of the Group's full year results announcement in February 2024. The Programme will be effected in accordance with the terms of the authority granted by shareholders at the 2023 AGM...

Jinchuan Group [HK:2362]

On August 8, Jinchuan Group International Resources announced : "Operational update for the six months ended 30 June 2023....."

On August 18, Jinchuan Group International Resources announced :

Jinchuan International announces 2023 interim results. Significant progress in development project and continued improvement in mine efficiency...In 2022, Jinchuan Group’s annual production of nickel and cobalt respectively ranked fourth globally.

Sumitomo Metal Mining Co. ( SMMYY )

On August 7, Sumitomo Metal Mining Co. announced : "Consolidated financial results for the first quarter ended June 30, 2023 [IFRS]..."

Anglo American [LSX:AAL] ( AAUKF )

No nickel related news for the month.

Eramet [FRA:ERA] ( ERMAY )

No news for the month.

Sherritt International ( SHERF )[TSX:S]

On July 26, Sherritt International announced :

Sherritt reports Q2 results and strong liquidity from Cobalt Swap... Available liquidity in Canada of $125 million largely driven by the successful completion of the first year of the Cobalt Swap...Sherritt’s share of finished nickel and cobalt production at the Moa JV was 3,268 tonnes and 331 tonnes, 12% and 16% lower, respectively, than the prior year quarter. Net earnings from continuing operations was $0.3 million, or per share in Q2 2023, compared $81.5 million, or $0.21 per share, in Q2 2022...

IGO Limited [ASX:IGO] ( IIDDY )

On July 31, IGO Limited announced :

Quarterly report period ended 30 June 2023. Strong finish to FY23 with another record quarterly financial result...Net cash position of $415M, following $90M debt repayment.....Within the nickel business, Nova delivered a strong final Quarter, with metal production improving compared to the prior quarter. Full year nickel production ended the year just below the bottom end of guidance, while cash costs were within guidance range. Forrestania also finished the year well, with production and costs in line with guidance. Prior to the impairment related to the Western Areas acquisition, Net Profit After Tax (NPAT) for the quarter was approximately $525M, driven by higher earnings from TLEA. This excludes the impairment on the Cosmos and Forrestania assets which is expected to be between $880M and $980M before tax..."

Panoramic Resources [ASX:PAN] ( PANRF )

Panoramic's Savannah mine and mill has a forecast life of mine average annual production rate of 10,800t of nickel, 6,100t of copper and 800t of cobalt metal contained in concentrate.

On August 18, Panoramic Resources announced : "Transition to owner operated processing model." Highlights include:

• "Existing agreement with Primero under which Primero operates and maintains the process plant at the Savannah Nickel Mine has concluded by mutual agreement.
• All Primero employees at Savannah have been offered employment with Panoramic as part of the transition of the process plant to owner operation.
• Transition to owner operated model is anticipated to deliver operating cost savings immediately."

Nickel 28 Capital Corp. [TSXV:NKL] [GR:3JC]

No significant news for the month.

Nickel Industries Limited [ASX:NIC] ( NICMF )

On July 31, Nickel Industries Limited announced :

Quarterly activities report for the quarter ended 30 June 2023. Record 32,558 tonnes of nickel production - further growth expected in September quarter with Oracle Nickel power plant now online.....Cash + receivables + inventory at quarter end of US$872.4M (March quarter: US$808.0M). Completion of US$400M senior unsecured notes issuance and concurrent refinance and tender offer of existing bonds. Conditional Share placement and Collaboration Agreement executed with United Tractors. Declaration of a A$0.02 per share interim dividend.

On August 4, Nickel Industries Limited announced : "Completion of HNC HPAL and Oracle Nickel acquisitions." Highlights include:

• "Acquisition of a 10% equity interest in the Huayue Nickel Cobalt Project, currently producing low-carbon battery-grade nickel for the electric vehicle supply chain.
• Acquisition of an additional 10% equity interest in the low-cost Oracle Nickel Project.
• Options for additional future diversification into ‘Class 1’ battery-grade nickel secured.
• Nickel Industries has a clear path to becoming the world’s largest listed diversified pure-play nickel producer."

On August 7, Nickel Industries Limited announced : "Completion of Hengjaya Mine to IMIP Haul Road."

Other nickel producers

First Quantum Minerals [TSX:FM] ( FQVLF ), Franco/Nevada [TSX:FNV], MMG [HK:1208], South32 [ASX:S32], Lundin Mining [TSX:LUN], Nickel Asia Corporation [PSE:NIKL] (NCKAF), Platinum Group Metals’ [TSX:PTM] ( PLG ).

Nickel juniors

Horizonte Minerals Plc [TSX:HZM] [AIM:HZM]

Horizonte is developing its 100% owned Araguaia Nickel Project (Araguaia) as Brazil’s next major ferronickel mine.

On August 3, Horizonte Minerals Plc announced :

Horizonte minerals provides Q2-2023 update construction of Araguaia Nickel Project now 65% complete...Araguaia Nickel Project Line 2 Feasibility Study (“FS”), which aims to double nickel production from 14,500 tonnes per annum to 29,000 tonnes per annum, to be published later this year. Liquidity and funding sources of US$344 million as of 30 June 2023...

On August 17, Horizonte Minerals Plc announced : "Interim financial results for the six months ended 30 June 2023....."

You can read a recent Trend Investing article here that discusses Horizonte Minerals.

Poseidon Nickel [ASX:POS] ( PSDNF )

On July 31, Poseidon Nickel announced : "Quarterly report 30 June 2023." Highlights include:

Updated Black Swan Mineral Resource Estimate

• "Updated Black Swan disseminated Mineral Resource Estimate of 26.3Mt at 0.72% Ni for 189,000t Ni.
• Compared to the 2022 Mineral Resource: 48% increase in the contained Ni in the Measured and Indicated JORC Resource Categories. 14% increase in the average Ni grade; and 8,000t increase in contained Ni."

Black Swan Expansion Project - 2.2Mtpa throughput

• "Expansion Project prefeasibility study continues to progress and is on track to be completed late in 2023.
• Concentrate samples sent to potential customers to confirm suitability as a feed source for their hydrometallurgical processes."

Lake Johnston

• "Assay results from the recent drill program on the Western Ultramafic Unit has identified multiple zones of anomalous nickel, with several grading above 1.0% Ni.
• Potential open-ended channel up to 400m wide identified at Maggie Hays West.
• Planning the next round of drilling to test the six additional targets identified along the 14km strike."

Corporate

• "Cash and investments of $5.7 million at 30 June 2023."

On August 7, Poseidon Nickel announced : "Successful a$6 million placement."

Talon Metals [TSX:TLO] ( TLOFF ) Tamarack - (JV with Rio Tinto)

Tamarack is a high grade nickel-copper-cobalt project located in Minnesota, USA, with considerable exploration upside. Talon Metals owns a 51% project share, with potential to further earn-in to a 60% share by 2026.

On August 14, Talon Metals announced :

Talon Metals reports results for the quarter ended June 30, 2023... Capitalized exploration costs and deferred expenditures on the Tamarack Nickel-Copper-Cobalt Project for the three months ended June 30, 2023 amounted to $10.7 million. This compares to $11.8 million for the three months ended June 30, 2022. The total capitalized exploration cost to the Tamarack Nickel-Copper-Cobalt Project to June 30, 2023 amounts to $178.9 million.

On August 21, Talon Metals announced :

Talon Metals drills 101.71 meters (333 feet) of 3.04% nickel equivalent at the Tamarack Nickel Project.

Garibaldi Resources [TSXV:GGI] [GR:RQM] [LN:OUX6] ( GGIFF )

No news for the month.

St George Mining Ltd. [ASX:SGQ] [GR:SOG]

The Cathedrals, Stricklands and Investigators nickel-copper discoveries (at Mt Alexander) are located on E29/638, which is held in joint venture by Western Areas Limited (25%) and St George (75%). St George is the Manager of the Project with Western Areas retaining a 25% non-contributing interest in the Project (in regard to E29/638 only) until there is a decision to mine.

On July 31, St George Mining Ltd. announced : "Quarterly activities report for the period ended 30 June 2023." Mostly focused on lithium projects.

Queensland Pacific Metals [ASX:QPM] ( QPMLF )

On August 15, Queensland Pacific Metals announced : "First on-spec Nickel Sulfate produced at pilot scale." Highlights include:

• "Sulfate Refinery pilot plant produces Nickel Sulfate which meets the specifications of the General Motors, LG Energy Solutions and POSCO offtake agreements.
• Sulfate Refinery piloting validates the commercial flowsheet being used in the TECH Project, providing potential financiers with comfort.
• Piloting was undertaken at the facilities of SGS Canada."

On August 22, Queensland Pacific Metals announced : "Capital raising brings in strategic investor SMT." Highlights include:

• "Successful $16 million placement at $0.07 per share which includes: $5 million strategic investment by ore supplier Société des Mines de la Tontouta (“SMT”). $1.5 million investment by General Motors Holdings, LLC (“GM”) as part of existing investment agreement.
• Launch of $8 million share purchase plan on the same terms so QPM shareholders can participate.
• Demand received in excess of amount sought and strongly supported by shareholders and institutional investors.
• Funds raised will enable gas production growth at the Moranbah Project and ongoing technical workstreams required to secure debt financing at the TECH Project."

You can read a recent Trend Investing article here that discusses QPM.

Premium Nickel Resources Corporation [TSXV:PNRL]( PNRLF )

On August 16, Premium Nickel Resources Corporation announced :

Premium Nickel Resources Ltd. provides update on Selebi Mines Project....("Ni-Cu-Co") sulphide mines in Botswana. The Company has commenced the second phase of a focused strategy to develop the past-producing Selebi North and Selebi Main mines (together, the "Selebi Mines") with the initial objective of defining a mineral resource estimate on the Selebi Mines in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and, pending positive results, the completion of a preliminary economic assessment ("PEA") on the Selebi Mines.

Canada Nickel Company [TSXV:CNC]( CNIKF )

On August 22, Canada Nickel Company announced : "Canada Nickel confirms discovery at Mann Northwest Property." Highlights include:

• "First eight holes drilled at Mann Northwest intersected multi-hundred metre intervals of mineralized peridotite and minor dunite across combined strike length of 2.7 kilometres.
• Target remains open in all directions.
• Mann Northwest target geophysical footprint of 6.0 km 2 is more than triple the size of Crawford project footprint.
• Hole MAN23-02 returned 0.26% Ni over core length of 210 metres including 0.31% nickel over 33 metres. Hole ended with 0.52 g/t Pt+Pd over 29 metres."

Investors can view a CEO video here , or a CEO interview here on Trend Investing.

Ardea Resources [ASX:ARL] ( ARRRF )

In total, Ardea has 6.1Mt of contained nickel and 386,000t of contained cobalt at their KNP Project near Kalgoorlie in Western Australia. Ardea is also exploring for gold and nickel sulphide on their >5,100 km2 of 100% controlled tenements in the Eastern Goldfields region of Western Australia.

On July 27, Ardea Resources announced :

Quarterly operations report for the quarter ended 30 June 2023..... $10.6M cash-at-bank, no debt, tight capital structure, and supportive share register seeking development of the Kalgoorlie Nickel Project (KNP)...

On August 21, Ardea Resources announced : "Highway EIS nickel sulphide drillhole." Highlights include:

• ".....A single diamond drillhole, AHID0024, has commenced at the Highway Project testing the nickel sulphide prospectivity of the Walter Williams Formation...
• Joint research into the Walter Williams Formation by Ardea and CSIRO has indicated potential nickel sulphide prospectivity in a unit historically thought to solely host nickel laterite mineralization."

On August 30, Ardea Resources announced : "Successful A$16M Capital Raising....at A$0.70 per share.

Centaurus Metals Limited [ASX:CTM] ( CTTZF )

Centaurus Metals is an Australian-based minerals exploration company focused on the near-term development of the Jaguar Nickel Sulphide Project, in Northern Brazil.

On August 1, Centaurus Metals Limited announced :

Successful completion of $47m share placement to advance, de-risk and grow Jaguar Nickel Sulphide Project. Proceeds to be used to finalize DFS, FEED and other pre-FID activities at Jaguar...DFS scheduled for completion late this year. The funds will also underpin Front End and Engineering Design ((FEED)) work and other pre-development and financing activities ahead of a Final Investment Decision ((FID)), including the recently commenced strategic partnering process. The Company’s strengthened balance sheet will also allow it to progress the Jaguar Deeps exploration drill program, where step-out drilling recently returned wide, high-grade intercepts. The new phase of drilling is designed to significantly increase the already globally significant Mineral Resource Estimate.....

You can read a Trend Investing article here that discusses Centaurus Metals.

Alliance Nickel [ASX:AXN] (formerly GME Resources)

On August 4, Alliance Nickel Limited announced : "Stellantis receives FIRB approval for second Tranche Strategic Placement to Alliance." Highlights include:

• "Tranche 2 new equity proceeds of A$2.3 million expected in September 2023.
• Completion will increase Stellantis’ total equity investment in Alliance (at A$0.18 per share) to A$15 million."

On August 28, Alliance Nickel Limited announced : "Financial report 2023....."

Widgie Nickel [ASX:WIN]

On July 31, Widgie Nickel announced : "June 2023 quarterly report." Highlights include:

• "New significant nickel discovery south of the existing Gillett Resource, proving that mineralization continues in an area previously considered “closed off”: 23MERCD017 30m @ 1.17% Ni, 0.14% Cu, 0.03% Co, 0.04 g/t Au, 0.11 g/t Pd, 0.09 g/t Pt from 214.0m.....and 11m @ 1.57% Ni, 0.18% Cu, 0.05% Co, 0.03g/t Au, 0.10g/t Pd, 0.11g/t Pt from 232.0m
• High-grade nickel results at Munda including: MEDD026 12.46m @ 2.05% Ni from 329.6m, incl. 6.06m @ 3.20% Ni from 336.0m. MERC163 1m @ 4.35% Ni from 59m. MERC167 6.12m @ 4.39% Ni from 246.25m, incl. 2.55m @ 7.08% Ni from 249.45m.
• Significant nickel Mineral Resource upgrade targeted for the current half on the back of these strong results.
• Armstrong deposit nearing development ready status, however Widgie will now also consider an alternative of incorporating Armstrong as part of a more substantive integrated nickel mining operation."

On August 11, Widgie Nickel announced :

Exceptional 132N massive sulphide hit. Exceptional nickel mineralisation uncovered at 132N whilst continuing Resource definition drilling. 23MERCD112 returns Portable XRF readings of up to 26.5% Ni. Consistent nickel sulphide mineralization within 23MERCD112. 23MERCD112 laboratory assays expected in September 2023.....

For further details see:

Nickel Miners News For The Month Of August 2023