MURMF - Nickel Miners News For The Month Of January 2023

Summary

• Nickel spot prices were slightly lower the last month and the LME inventory was lower.
• Nickel market news - ING: Short-term pressure for nickel due to a surplus in the market, but said prices should see some support from tight conditions for Class 1 nickel.
• Nickel company news - Nickel Industries Ltd enters into agreements to acquire interests in two producing nickel assets. Queensland Pacific Metals' non-binding letter of interest received from Export Development Canada.
• Canada Nickel confirms major discovery at Reid, multi-hundred-meter intervals of mineralization. Murchison Minerals drills 19.92 m at 1.17% NiEq. Power Nickel drills 0.88% Ni, 0.56% Cu, 0.06% Co, 1.64 ppm Pd and 0.15 ppm Pt over 40.30m.

Welcome to the nickel miners news for January.

The past month saw some analysts forecasts released for the nickel market in 2023, with forecasts of excess new Indonesian supply possibly balanced by strong China demand from the Covid-19 reopening.

Nickel price news

As of January 30, the nickel spot price was USD 13.04 , slightly lower than USD 13.43 last month. LME shows the price at USD 29,060/tonne . Nickel inventory at the London Metals Exchange [LME] was lower the past month at 49,542 tonnes ( 5 4,228 tonnes last month).

Nickel spot price 5 year chart - Current price = USD 13.04/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

Source : International Energy Agency 2021 report

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 28 Investing News reported :

Nickel price forecast: Top trends that will impact nickel in 2023.....The reported LME stocks are now below three weeks of consumption... "China's relaxation of its COVID policy would have a significant effect on the steel market, and by extension on the nickel market," Manthey said. Looking over to supply, Indonesia will be key to watch as it boosts production to meet demand...."We believe rising output in Indonesia will pressure nickel prices next year,"... "The lack of advanced, viable nickel projects will put a scarcity premium on the nickel assets that can advance into production in the next several years."...In closing, Manthey reiterated that ING expects short-term pressure for nickel due to a surplus in the market, but said prices should see some support from tight conditions for Class 1 material. "We see prices hovering between US$20,000 and US$20,500 over the first two quarters of 2023 before gradually increasing to US$21,000 in 3Q and US$22,000 in 4Q as the global growth outlook starts to improve," Manthey said....Panelists polled by FocusEconomics see nickel prices averaging US$21,559 by the end of 2022 and US$20,366 by the end of 2023.

On January 10 Financial Post reported :

India's foray into the EV battery market lacks some key ingredients. ..The world's second most populous country has only a fraction of the raw materials needed to satisfy domestic demand for lithium-ion batteries - forecast by Crisil to grow 100 fold by 2030 - let alone produce on a global scale...As the world moves away from gasoline-fueled combustion engines, demand for lithium, nickel, cobalt and other metals that go into lithium-ion batteries is soaring. BloombergNEF estimates that global appetite for the metals used in next-generation batteries increased 50% last year alone and will nearly quadruple by the end of the decade. Supplies are getting tight, and that's already driving up costs...

On January 10 Bloomberg reported :

Nickel market faces new shock as 'Big Shot' boosts metal output.... Tsingshan, which is already building facilities to produce refined nickel in Indonesia, is in discussions with several struggling Chinese copper plants about processing its material into the more-valuable refined metal... If successful, Tsingshan's plan, together with similar moves by its peers, could double Chinese refined nickel production this year, from about 180,000 tons in 2022 - adding roughly a fifth to global refined output.

On January 12 Mining.com reported :

Metals prices could spike with markets so tight, Trafigura says....His comments come as mining executives warn that much more investment is needed to ensure the world has enough supplies of energy-transition metals in the next decade.....

On January 19 Reuters reported : "Davos 2023: LME CEO says nickel reforms to be implemented 'relatively quickly.'"

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 .

No nickel news for the month.

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

On January 16 MMC Norilsk Nickel announced : "Nornickel tests new technologies as Norilsk is undergoing a makeover."

On January 24 MMC Norilsk Nickel announced :

Nornickel announces consolidated production results for FY2022.....In 4Q22, consolidated nickel output increased 1% quarter-on-quarter (q-o-q) to 60kt, practically all of which were produced from the Company's own Russian feed (59.7 kt)......In 2022, consolidated nickel output increased 13% year-on-year (y-o-y) to 219 kt, almost all of which were produced from own Russian feed (218.7 kt, +15% y-o-y)......

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 January 19 BHP Group announced : "BHP operational review for the half year ended 31 December 2022." Highlights include:

• ''.....BHP entered into a Scheme Implementation Deed with OZ Minerals Ltd (OZL) to acquire 100% of OZL by way of a scheme arrangement for a cash price of A$28.25 per OZL share."

BHP's Nickel West operations

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

On January 26 Glencore announced :

World's first Battery Passport proof of concept provides pioneering step in supply-chain transparency. Glencore is proud to be part of the world's first battery passport proof of concept launched by the Global Battery Alliance.....

Jinchuan Group [HK:2362]

On January 9 Jinchuan Group Co., Ltd. announced :

Jinchuan contributes to new chapter in China's nickel cobalt industry.....Jinchuan will ensure that the total R&D investment at the end of the 14th Five-Year Plan (2021-25) period is no less than 5.5 billion yuan (about $810 million), strive to undertake more than 5 national major projects and 20 provincial key projects, and achieve a conversion rate of scientific and technological achievements of more than 65%.....

Sumitomo Metal Mining Co. ( OTCPK:SMMYY )

No news for the month.

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

No nickel news for the month.

Eramet ( OTCPK:ERMAY )

No nickel related news.

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

On January 23 Sherritt International announced : "Sherritt reports strong 2022 production results and provides 2023 guidance." Highlights include:

2022 Actual

• "At the Moa Joint Venture (Moa JV) finished nickel production was 32,268 tonnes (100% basis), in line with guidance, representing a 3% increase year-over-year primarily due to increased refinery reliability and higher nickel-to-cobalt ratio, while finished cobalt production of 3,368 tonnes (100% basis) was materially within guidance...."

2023 Guidance

• "2023 will be a transition year for the Moa JV. The key priority will be to ensure the expansion plan remains on time and on budget.....finished nickel production is forecast to be 30,000 - 32,000 tonnes (100% basis), while finished cobalt production is forecast to be 3,100 - 3,400 tonnes (100% basis).
• Net direct cash costs (NDCC) ¹ at the Moa JV are forecast to be in the range of US$5.00 - US$5.50 per pound of finished nickel sold.
• Sherritt's share of spending on capital ¹ is forecast to be C$94.4 million: Sustaining spending on capital of C$70 million is primarily for infrastructure, the replacement of equipment, and tailings management at the Moa JV. Growth spending on capital of C$20 million is primarily for the continued construction of the new SPP and leach plant sixth train at the Moa JV. Sustaining spending on capital of C$4.4 million at Power is primarily for maintenance and equipment purchases."

IGO Limited [ASX:IGO] ( OTC:IIDDY )

No nickel related news.

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.

On January 9 Panoramic Resources announced : "Preliminary December quarter production results." Highlights include:

• "....Jumbo development down 12% to 1,142m.
• Nickel recovery up 1% to 80.8%.
• Concentrate production up 13% to 20,274t.
• Contained nickel production up 14% to 1,524t.
• Contained copper production up 2% to 830t.
• Contained cobalt production up 21% to 105t."

Nickel Industries Limited [ASX:NIC] ( NICMF )

On January 18 Nickel Industries Limited announced : "Transition to nickel matte and continued ramp-up of ANI underpins strong December quarter." Highlights include:

• "Record nickel metal production of 23,072 tonnes (100% basis), including maiden nickel matte.
• Strong RKEF margins driven by improved contract pricing and broadly lower costs.
• Record mine production with significant increase in limonite sales to IMIP HPAL projects.
• December quarter Group EBITDA from operations of US$106.1M1.
• Current growth projects remain ahead of schedule and on budget....."

On January 18 Nickel Industries Limited announced :

Nickel Industries enters into agreements to acquire interests in two producing nickel assets and announces a US$471 million capital raise.....

On January 19 Nickel Industries Limited announced :

Successful completion of Institutional Placement. The Institutional Placement raised approximately A$264 million (US$185 million) from the issue of 259.1 million new ordinary shares ("New Shares") at A$1.02 per New Share. The Institutional Placement was strongly supported by both new and existing institutional shareholders....

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

No news for the month.

Mincor Resources [ASX:MCR] ( MCRZF )

On January 10 Mincor Resources announced :

Completion of Share Purchase Plan. Mincor Resources NL (ASX: MCR, "Mincor" or "the Company") is pleased to confirm that the Share Purchase Plan [SPP], which closed early on 3 January 2023 with valid applications for a total of 6,292,890 new shares (New Shares), is complete. The SPP raised a total of $8,747,500 (before costs), exceeding the targeted $5,000,000.

On January 19 Mincor Resources announced : "Outstanding new high-grade intercepts point to extensions at Northern operations as initial Cassini UG drilling commences. Broader exploration envelope emerging at the Northern Operations, with recent underground diamond drilling highlighting potential extensions to the Durkin North channel." Highlights include:

• "Recent extensional drilling at Durkin North has returned outstanding new high-grade nickel intersections: ULG-22-117 - 1.9m @ 12.4% Ni. ULG-22-107 - 2.9m @ 9.2% Ni. ULG-22-121 - 3.8m @ 7.4% Ni. ULG-22-113 - 2.3m @ 6.4% Ni. ULG-22-115 - 5.2m @ 5.3% Ni.
• These latest intercepts indicate significant potential for strike and dip extensions of the Durkin North orebodies, across a broader emerging mineralized channel.
• Meanwhile, the recently delineated LN04a orebody continues to grow, with recent drilling reinforcing the up-dip potential. Significant new intersections include: ULG-22-130 - 1.5m @ 11.8% Ni. ULG-22-120 - 5.8m @ 3.7% Ni. ULG-22-134 - 1.4m @ 3.7% Ni.
• Two diamond drill rigs continue drilling underground at the Northern Operations, with drill programs focused on delineating Durkin North extensions and the continued expansion of the LN04a deposit.
• A third underground diamond drill rig has now commenced underground drilling at Cassini, with this first drilling program targeting the exciting Cassini North area."

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] ( OTC:NIKAY ), 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 January 24 Horizonte Minerals Plc announced :

Horizonte Minerals Plc submits Environmental and Social Impact Assessment for its Vermelho Nickel Cobalt Project.

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

No news for the month.

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 January 19 Talon Metals announced :

US EV Battery Supply Chain: Talon Metals confirms potential new system of high-grade nickel mineralization at Tamarack Nickel Project in Central Minnesota. Exploration team identifies new high-grade nickel mineralization to be called the "Raptor Zone", intersecting high-grade nickel in first 6 out of 9 holes nearly 2 miles from the current resource area.

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

No 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.

No significant 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.

No significant news for the month.

Queensland Pacific Metals [ASX:QPM] ( QPMLF )

On December 16, Queensland Pacific Metals announced : "Debt funding update." Highlights include:

• "QPM's debt financing process is progressing well: Ongoing discussions with other financiers providing QPM with greater clarity of the likely indicative debt syndicate for the TECH Project. Independent Technical Expert RPM Global has formally commenced technical due diligence. Independent Market Consultant CRU Group has commenced its review of the Nickel and Cobalt Sulfate markets to support the financing.
• Non-binding letter of interest received from Export Development Canada ("EDC"), Canada's export credit agency, for the potential provision of debt funding for the TECH Project for up to A$200m. EDC's financing is subject to the successful completion of its due diligence process and underwriting conditions."

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

On January 20 Premium Nickel Resources Corporation announced :

Premium Nickel Resources Ltd. to begin trading on the OTCQX Best Market and Appoints Timothy H. Moran as CLO.....Premium Nickel Resources Ltd. (TSXV: PNRL) (OTCQX: PNRLF) ("PNRL" or the "Company"), is pleased to announce that the common shares of the Company will begin trading on the OTCQX Best Market ("OTCQX Market") at the open of the market on January 20, 2023 under the symbol "PNRLF".

Canada Nickel Company [TSXV:CNC]( CNIKF )

On January 4 Canada Nickel Company announced : "Canada Nickel announces integration of carbon capture & storage into Crawford Nickel Sulphide Project."

On January 18 Canada Nickel Company announced : "Canada Nickel confirms major discovery at Reid, provides financing update." Highlights include:

• "All 16 holes at Reid intersected multi-hundred metre intervals of mineralization with 6 holes in Central Core Area intersecting higher grades.
• Holes REI22-14 and REI22-16 confirm mineralization of over 500 metres width - approximately 50% wider than Crawford Main Zone and more than 100% wider than Crawford East Zone.
• Reid geophysical target footprint of 3.9 km2, is more than two times larger than the 1.6 km2 footprint of the flagship Crawford Nickel Project resource."

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

Ardea Resources [ASX:ARL] ( ARRRF )

No significant nickel news for the month. Ardea did announce an Ionic Clay rare earth discovery.

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 January 24 Centaurus Metals Limited announced :

December 2022 quarterly activities report. Jaguar Mineral Resource increased to 108.0Mt @ 0.87% Ni for 938,500 tonnes of contained nickel metal; Definitive Feasibility Study ((DFS)) continues and remains on track for delivery by mid-2023.....

Widgie Nickel [ASX:WIN]

On January 23 Widgie Nickel announced : "Gillett Mineral Resource expands in size and confidence, with further near-term growth potential." Highlights include:

• "Gillett deposit Mineral Resource expanded by 20% to 1.56 million tonnes at 1.5% nickel for 23,400 tonnes contained nickel between 80 and 350 metres below surface.
• 60% of Gillett mineral resource upgraded to the higher confidence Indicated category.
• Resource now quantifies Palladium + Platinum endowment with Pd (0.17g/t) and Pt (0.08g/t) (contained metal equating to 8,515oz Pd and 4,007oz Pt).
• Significant opportunity for further Resource growth through extension and connection with the Gillett North discovery.
• Widgie South comprising Widgie 3, Gillett and Widgie Townsite now ready for technical evaluation aiming to become the Company's second major nickel production centre."

For further details see:

Nickel Miners News For The Month Of January 2023