SAMMF - Nickel Miners News For The Month Of December 2022

Summary

• Nickel spot prices were significantly higher the last month and the LME inventory was higher.
• Nickel market news - BMI: You can build the cathode/battery/EV plants; but if you don't have the raw materials, they're just expensive weights on your balance sheet.
• Nickel company news - Vale to break out base metals business, sell stake in 2023. Mincor Resources first stope successfully completed at Cassini and continues to ramp up nickel production.
• Horizonte Minerals construction of Araguaia Nickel Project remains on schedule and on budget - approximately 28% complete. Queensland Pacific Metals Feasibility Study confirms TECH Project credentials. Canada Nickel confirms higher grade interval at Reid, announces discovery at Sothman.

Welcome to the nickel miners news for December.

The past month saw nickel prices surge higher. We also saw some reports suggesting nickel prices to remain under pressure in the short term as a surplus in the market builds; however Class 1 nickel for batteries is said to offer support with strong demand. Longer term the nickel demand story remains strong. It was also a busy month of news from the nickel junior miners.

Nickel price news

As of December 29, the nickel spot price was USD 13.43 , higher than USD 11.61 last month. LME shows the price at USD 30,500/tonne . Nickel inventory at the London Metals Exchange [LME] was higher the past month at 5 4,228 tonnes (52,170 tonnes last month).

Nickel spot price 5 year chart - Current price = USD 13.43/lb

Nickel demand v supply charts

Sumitomo Metal Mining forecasts (as of Sept. 2022) small nickel deficits for 2022 and 2023 ( source , page 11)

BloombergNEF forecasts 'battery' nickel demand set to surge over ten fold this decade as the EV boom takes off (2020 chart)

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

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

Nickel Market News

On December 1 Seeking Alpha reported :

ProShares launches an ETF meant to capitalize on the growing demand for batteries ...ProShares is looking to capture with the launch of the ProShares S&P Global Core Battery Metals ETF ( ION ). The fund, which hit the market on Thursday, offers exposure to global stocks involved in the mining of lithium, nickel or cobalt. According to ProShares research, global demand for batteries is anticipated to expand by 25% annually until at least 2030.

On December 8 Investing News reported :

Nickel price 2022 year-end review ... nickel is the standout across the complex, managing to hold onto year-to-date gains ...Manthey said she expects more near-term volatility to continue until the LME rebuilds trust in the benchmark nickel contract, volumes pick up again and the market’s confidence in it recovers. “We forecast nickel prices to remain under pressure in the short term as a surplus in the market builds; however, the tightness in the Class 1 market is likely to offer some support,” she added.

On December 13 Investing News reported :

"Caspar Rawles: Cathodes, anodes and what to expect in 2023 ... “Fundamentally, one of the challenges that potentially plays into all of this, is that you can build the battery plants, you can build the EV plants, you can build the cathode plants, but if you don't have the raw materials to feed them, they're just expensive weights on your balance sheet,” Rawles said.

On December 15 Yahoo Finance reported :

Nickel market to achieve USD 59.14 billion by 2028 | Fortune Business Insights™ ...

On December 16 Bloomberg reported :

Chinese companies are flocking to Indonesia for its nickel. Over a decade, they’ve poured upwards of $14 billion into two ore-rich islands to lock in supplies for battery production.

Nickel Company News

Producers

Vale SA (NYSE: VALE )

Vale plans a US$1.7B Voisey's Bay expansion plan to boost their nickel production. Construction began in 2018 and is expected to be complete by 2022. You can read more here .

On December 7, Bloomberg reported : "Vale to break out base metals business, sell stake in 2023." Highlights include:

• "Copper and nickel mines will be housed in new legal structure.

• Potential base metals IPO to be weighed further down the road."

On December 8 Reuters reported :

Miner Vale looks to close deal with partner for base metals in H1. Brazilian mining company Vale [VALE3.SA] is in advanced talks with possible partners for its new base metals investment vehicle and looks to have a deal concluded during the first half of 2023, Chief Financial Officer Gustavo Pimenta said on Wednesday. Pimenta told investors during a meeting at the New York Stock Exchange that Brazil's Vale will sell only 10% of the new base metals unit to the chosen partner and will retain the remaining 90% so as to have control over the decisions for the venture.

Norilsk Nickel [LSX: MNOD] ( OTCPK:NILSY )

On December 16, Norilsk Nickel announced : "Nornickel approves budget for 2023. CAPEX is expected to rise 10% year - on - year to USD 4.7 bn ."

On December 22, Norilsk Nickel announced : "«Nornickel» successfully placed CNY 5 billion exchange-traded bonds."

BHP Group [ASX:BHP] (NYSE: 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 December 22, BHP Group announced :

BHP and OZL enter into scheme implementation deed. BHP has entered into a Scheme Implementation Deed ((SID)) with OZ Minerals Limited (OZL) to acquire 100% of OZL by way of a scheme of arrangement for a cash price of A$28.25 per OZL share (Scheme). The SID confirms the terms of the Scheme and BHP’s non-binding indicative proposal announced on 18 November 2022. The execution of the SID follows the completion of a four-week exclusive due diligence period.

BHP's Nickel West operations

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

On December 5, Glencore announced : "ACE Green Recycling signs inter-continental Offtake Agreement with Glencore ..."

Jinchuan Group [HK:2362]

No significant news for the month.

Sumitomo Metal Mining Co. ( OTCPK:SMMYY )

On December 21, Sumitomo Metal Mining Co. announced :

The Philippine Coral Bay Nickel Corporation and the Taganito HPAL Nickel Corporation win four awards between them from the Department of Environment and Natural Resources.

Anglo American [LSX:AAL] ( OTCPK:AAUKF )

On December 7, Anglo American announced :

Anglo American combines nuGen™ with First Mode and invests $200m to accelerate Zero Emissions Haulage Solution.

On December 9, Anglo American announced : "Anglo American builds operational momentum for next phase of value-driven growth."

Eramet ( OTCPK:ERMAY )

No nickel related news for the month.

Sherritt International ( OTCPK:SHERF )[TSX:S]

On December 1, Sherritt International announced :

Sherritt agrees to purchase $90 million of secured second Lien and Junior Notes pursuant to oversubscribed offers.

IGO Limited [ASX:IGO] ( OTC:IIDDY ) (formerly Independence Group)

No nickel related news for the month.

Panoramic Resources [ASX:PAN] ( OTCPK: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.

No significant news for the month.

Nickel Industries Limited [ASX:NIC] ( OTCPK:NICMF )

No news for the month.

Nickel 28 Capital Corp. [TSXV:NKL] [GR:3JC] (CONXF) (NKL:CA)

On December 20, Nickel 28 announced: "Nickel 28 files Fiscal Q3 Financial Statements."

Mincor Resources [ASX:MCR] ( OTCPK:MCRZF )

On November 29, Mincor Resources announced :

Key milestone with first stope at cassini. First stope successfully completed at Cassini, marking another important step as Mincor continues to ramp-up towards achieving full-scale production at Kambalda .

On December 9, Mincor Resources announced :

Targeted a$60 million capital raise to accelerate golden mile development, Cassini exploration. Proceeds to be used to accelerate access into Golden Mile, accelerate initial underground diamond drilling at Cassini and strengthen Mincor’s balance sheet for the remainder of the FY2023 ramp-up year ...

On December 13, Mincor Resources announced :

Successful completion of bookbuild for A$55m placement. Proceeds to be used to accelerate access into Golden Mile, accelerate initial underground diamond drilling at Cassini and strengthen Mincor’s balance sheet for the remainder of the FY2023 ramp-up year ...

Other nickel producers

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

Nickel juniors

Horizonte Minerals Plc [TSX:HZM] [AIM:HZM] (HZMMF)

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

On December 1, Horizonte Minerals Plc announced :

Horizonte Minerals Plc awards Port contracts for its Araguaia Nickel Project in Brazil a key condition required for drawdown of debt funding package.

On December 8, Horizonte Minerals Plc announced : "Horizonte Minerals Plc completes first drawdown under US$346 million senior debt facilities."

On December 15, Horizonte Minerals Plc announced : "Construction of Araguaia Nickel Project remains on schedule and on budget." Highlights include:

• " ...Construction is on-schedule with overall project progress approximately 28% complete.
• Construction is on-budget with approximately 75% of capital expenditure, over US$415m, awarded to date.
• Conditions related to the Senior Debt facility have been satisfied and first draw down has recently been completed.
• Ten-year renewable power contract secured at globally competitive prices, providing a foundation for future production costs in the lowest quartile globally."

Poseidon Nickel [ASX:POS] ( OTC:PSDNF )

On December 15, Poseidon Nickel announced : "Full steam ahead for Black Swan restart." Highlights include:

• " Drilling underway to increase Mineral Inventory for potential mine life extension.
• Further information has been provided to selected parties for offtake and financing for the smelter grade concentrate project with aim to finalise both early in the second quarter of 2023.
• On track for Final Investment Decision on the smelter grade concentrate project during Q2 2023.
• Feasibility Study on the Expansion Project (rougher concentrate) continues, this project could deliver longer term value through increased annual nickel production and longer mine life ."

Talon Metals [TSX:TLO] ( OTCPK: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.

No news for the month.

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

No significant news for the month.

OZ Minerals [ASX:OZL] ( OTCPK:OZMLF )

Owns the West Musgrave nickel-copper project in Western Australia as well as several other mines.

On December 6, OZ Minerals announced : "OZ Minerals, Boliden and Rio Tinto agree to innovate on solutions to pave the way for lower footprint mines ..."

On December 20, OZ Minerals announced : " Exclusivity period with BHP extended by one week ... "

On December 21, OZ Minerals announced :

Annual Mineral Resource and Ore Reserve update demonstrates portfolio of long-life assets. West Musgrave Ore Reserve tonnes increased ~7% with September 2022 Feasibility Study and positive investment decision; 270Mt @ 0.34% copper and 0.31% nickel; 24-year mine life to 2049.

On December 22, OZ Minerals announced : " Proposed acquisition of OZ Minerals by BHP progresses to signed Scheme Implementation Deed ."

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 November 29, St George Mining Ltd. announced : "St George secures funding to accelerate lithium exploration." Highlights include:

• " $7.2 million secured from a strongly supported placement of new shares to domestic and international investors.
• Shanghai Jayson New Energy Materials Co., Ltd, a global battery minerals investor, has provided a $2 million cornerstone commitment to the placement.
• St George now fully funded to accelerate drilling and other exploration activities at the fast-evolving lithium discovery at its flagship Mt Alexander Project located in a new Western Australian lithium province.
• More than 20,000m of drilling planned in the first half of 2023 to scope the extent and scale of lithium mineralisation at St George’s large landholding ."

On December 8, St George Mining Ltd. announced : "St George signs MoU with global battery giant - SVOLT."

On December 21, St George Mining Ltd. announced :

Strategic $2 million investment in St George by the Sunwoda Group – a world leader in the lithium-ion battery industry ... Hongkong Xinwei Electronic Co., Limited (“Xinwei”), a wholly-owned subsidiary of Sunwoda Electronic Co., Ltd (“Sunwoda”) – globally recognised for its industry leading credentials in the design and manufacture of lithium-ion batteries – has agreed to invest $2 million in St George by way of a placement of new shares at $0.086 per share ...

Queensland Pacific Metals [ASX:QPM] ( OTCPK:QPMLF )

On November 28, Queensland Pacific Metals announced : " Feasibility study confirms TECH Project credentials."

On December 5, Queensland Pacific Metals announced : " TECH Project Feasibility Study (amended) ... "

On December 15, Queensland Pacific Metals announced : " All major approvals for TECH Project received." Highlights include:

• " Development Permit under the Planning Act 2016 has been granted for the TECH Project in accordance with the Townsville City Plan 2014.
• Environmental Authority granted under the Environmental Protection Act 1994.
• QPM has now received all primary approvals for construction of the TECH Project at Lansdown.
• Townsville City Council commences construction of access road to QPM site, which upon completion will allow QPM to start site works around March/April 2023. "

On December 16, Queensland Pacific Metals announced : " Receipt of R&D tax refund." Highlights include:

• "$10.2m R&D Tax Incentive refund received for 30 June 2022 financial year.
• Current cash balance of $45.2m leaves QPM well positioned to advance the TECH Project in parallel with debt funding process."

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

On November 28, Premium Nickel Resources Corporation announced :

Premium Nickel Resources Ltd. closes previously-announced CAD $7 million bridgeL loan to fund ongoing work on its 100%-owned Botswana assets providing flexibility to finalize long-term financing initiatives.

On November 29, Premium Nickel Resources Corporation announced :

Premium Nickel Resources Ltd. announces filing of third quarter financial statements and related MD&A ...

On December 22, Premium Nickel Resources Corporation announced : "Premium Nickel Resources Ltd announces assay results at its 100% owned Selebi Mine in Botswana including: 6.80 metres of 2.06% NiEq (1.28% Ni, 2.35% Cu, 0.04% Co), 4.65 Metres of 1.55% NiEq (1.10% Ni, 1.24% Cu, 0.04% Co)." Highlights include:

• "SMD-22-006a-W2 (upper interval): 9.80 metres of 1.56% NiEq (0.97% Ni, 1.74% Cu, 0.03% Co), including 6.80 metres of 2.06% NiEq (1.28% Ni, 2.35% Cu, 0.04% Co).
• SMD-22-006a-W2 (lower interval): 4.65 metres of 1.55% NiEq (1.10% Ni, 1.24% Cu, 0.04% Co)."

Canada Nickel Company [TSXV:CNC]( OTCQX:CNIKF )

On December 1, Canada Nickel Company announced : " Canada Nickel confirms higher grade interval at Reid, announces discovery at Sothman." Highlights include:

• "Additional assay results confirm scale of discovery at Reid.
• Higher grade interval at Reid – REI22-07 325 metres of 0.29% nickel including 81 metres of 0.35% nickel.
• New discovery at Sothman."

For further details see:

Nickel Miners News For The Month Of December 2022