STMNF - Nickel Miners News For The Month Of June 2023

2023-06-30 08:06:20 ET

Summary

• Nickel spot prices were lower last month.
• Nickel market news - BMI forecasts a nearly 2 million tonne nickel supply gap by 2030 and says nickel requires the largest critical mineral investment of $66 billion.
• Nickel company news - Nickel Industries conditional 19.99% placement to PT United Tractors Tbk raises A$943m. Poseidon Nickel updated Black Swan disseminated Resource of 26.3Mt at 0.72% nickel.
• Centaurus Metals acquires offtake rights over the Jaguar Nickel Sulphide Project in Brazil. Widgie Nickel reports high-grade nickel results at Munda, including 12.46m @ 2.05% Ni from 329.6m.
• Sama Resources doubles mineral resources at the Samapleu-Grata Nickel-Copper Deposits in Côte d’Ivoire, West Africa. Power Nickel Nisk Project drills 0.60% Ni, 0.39% Cu, 0.50 g/t Pd, and 0.11 g/t Pt over 31.86m.

Welcome to the nickel miners news for June.

The past month saw lower nickel prices starting to impact some nickel producers and plenty of good progress from the nickel juniors.

Nickel price news

As of June 29, the nickel spot price was USD 9.22 , lower than USD 9.73 last month. LME shows the price at USD 19,845/tonne . Nickel inventory at the London Metals Exchange [LME] was higher the past month at 39,348 tonnes (38,172 tonnes last month).

Nickel spot price 5 year chart - Current price = USD 9.22/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

Nickel market news

In late May the U.S DoE released their draft Critical Materials Assessment report stating (page 29): "There are six critical materials in the short term, which include cobalt, dysprosium, gallium, natural graphite, iridium, and neodymium."

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

Dysprosium rates the highest supply risk critical mineral in the short term 2020-2025 ( source - page 28)

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

On May 31 Investing News reported :

A British consortium that includes mining giant Glencore will invest about $9 billion in Indonesia's mining and electric vehicle (EV) battery sectors, a minister said on Wednesday... The ministry confirmed the British consortium included firms such as Glencore, Indonesian state miner Aneka Tambang, materials company Umicore and energy company Envision Group.

On June 15 Market Index reported :

Nickel market surplus expected to last until 2025... A tsunami of supply from Indonesia has smothered nickel's prospects... But earlier this month, the US Department of Energy released its latest Critical Materials Assessment flagged lithium, nickel as well as a handful of specific rare earths as commodities most important to the energy transition and at the highest supply risk.

On June 19 Benchmark Mineral Intelligence reported :

Financing the battery arms race: The $514 billion cost of bridging the global EV supply chain divide... Demand for lithium ion batteries is forecast to grow to 3.7 terawatt-hours by 2030, up from around 1 TWh this year. Most of this growth is driven by an ever increasing demand for electric vehicles. Producing the critical raw materials will require $220 billion (43% of the total), with nickel and lithium accounting for over half of that. Manufacturing the additional 2.7 TWh of batteries needed by 2030 will require $201 billion and the midstream production of battery materials will take the remaining $93 billion... Refined nickel, too, will pose a challenge. With a near two million tonne supply gap between what is in production today and what is needed globally by 2030, nickel requires the largest critical mineral investment of $66 billion.

Benchmark breakdown of the supply chain estimated costs needed to reach 2030 battery cell demand estimates ( source )

Nickel Company News

Producers

Vale SA (NYSE: 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.

No nickel news for the month.

Norilsk Nickel (LSX: MNOD) (NILSY)

On May 31 Norilsk Nickel announced :

Nornickel presents metals market review... In early 2023, nickel has been the worst performer among base metals on the London Metal Exchange ((LME)). This was caused not only by a 45% price increase in 2022 and a subsequent correction, but also by worsening market fundamentals. Despite extremely low LME nickel exchange inventories, which are currently at the 2007 level and amount to less than 5 days of global use only, the LME nickel contract was down by 30% since the beginning of the year. This is primarily due to a significant surplus in the Class 2 market that occurred in 2022 and is expected to remain throughout 2023-2024, mainly owing to growing production of low-grade nickel in Indonesia. At the same time, robust demand for nickel in alloys and special steel sectors supports prices of the exchange-traded Class 1 nickel... Our forecast for nickel supply in 2023 is almost unchanged at 3.45 Mt (10% year-on-year growth) driven mainly by nickel pig iron (NPI) production in Indonesia and the commissioning of new nickel cathode capacities in Indonesia and China. This development has also led to a surplus in the previously tight Class 1 nickel market, which is expected to reach approximately 40 kt in 2023.

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.

No nickel related news for the month.

BHP's Nickel West operations

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

No nickel related news.

Jinchuan Group [HK:2362]

On June 23 Jinchuan Group announced :

Profit Warning... the Group is expected to record a loss attributable to the shareholders of the Company for the six months ended 30 June 2023 (the "Period") in the range between US$0 to 20 million as compared to the profit attributable to shareholders of the Company of approximately US$49.1 million recorded for the same period in 2022...

Sumitomo Metal Mining Co. ( OTCPK:SMMYY )

On June 1 Sumitomo Metal Mining Co. announced : "Sumitomo Metal Mining Group's Water Policy" has been established..."

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

No nickel related news for the month.

Eramet [FRA:ERA] ( OTCPK:ERMAY )

On June 8 Eramet announced : "Eramet launches global Water Resource Innovation Challenge 2023 in partnership with EIT Raw Materials..."

On June 22 Eramet announced : "Reporting on financial transparency of the Group as at 31 December 2022."

On June 22 Eramet announced : "Eramet's economic contribution grew in the main regions in which it operates."

On June 23 Eramet announced :

Eramet: Information relating to the repurchase by Eramet of all of its outstanding €500,000,000 4.196 per cent. Bonds due 28 February 2024 (ISIN: FR0013284643) (the "Bonds")... The repurchase of the Bonds enables Eramet to manage the Group's debt profile further proactively and to extend its average maturity, which is now close to 3 years.

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

On June 22 Sherritt International announced : "Sherritt releases its 2022 sustainability reports."

On June 27 Sherritt International announced :

Sherritt receives final 2023 cobalt dividend and $64 million cash top-up dividend under its cobalt swap agreement.

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

On June 13 IGO Limited announced : "Ivan Vella appointed as CEO and Managing Director..."

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 June 14 Panoramic Resources announced :

Savannah Nickel Project - operational update... Prior to the issues with the filter press, Savannah was on track to achieve the lower end of its FY23 guidance. As a result of the suspension of concentrate production, the FY23 guidance will not be met. Revised FY23 guidance for production is now expected to deliver 5,400 - 5,800t of nickel, 3,100 - 3,400t copper and 350 - 400t cobalt in concentrate at a C1 cost of $13.00 - $13.50 per pound of nickel.

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

On June 1 Nickel 28 announced : "ISS rejects Pelham's demand for wholesale change at Nickel 28..."

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

On June 9 Nickel Industries Limited announced : "Conditional share placement and execution of collaboration agreement with PT United Tractors subsidiary PT Danusa Tambang Nusantara conditional expansion of the Excelsior Nickel Cobalt Project ('ENC')." Highlights include:

• Conditional 19.99% placement to PT United Tractors Tbk ('UT'), through its subsidiary, PT Danusa Tambang Nusantara ('DTN') at A$1.10 per share raising proceeds of A$943 million (US$628 million), representing a 27.2% premium to Nickel Industries' last traded price.

• Nickel Industries and DTN have executed a Collaboration Agreement covering a conditional 20% direct investment in the ENC Project, as well as potential future Indonesian nickel mining and processing initiatives.

• UT with its deep local knowledge and network as well as industry expertise is an ideal long-term partner to support Nickel Industries in its future growth plans.

On June 21 Nickel Industries Limited announced : "Company receives "Most Promising Transition Award" at the 2023 ESG World Summit and Grit Awards."

On June 23 Nickel Industries Limited announced :

Oracle Nickel Power Plant commences commissioning... the Company's 70%-owned Oracle Nickel Project ('Oracle Nickel' or 'the Project') has commenced commissioning of its 380MW power plant within the Indonesia Morowali Industrial Park ('IMIP') in Central Sulawesi.

Mincor Resources [ASX:MCR] ( OTCPK:MCRZF ) - Wyloo Metals Pty Ltd takeover offer to close on July 5 .

On June 26 Mincor Resources announced : "Wyloo offer to close on 5 July." Highlights include:

• ...In the absence of a superior proposal, Mincor's Directors continue to unanimously recommend that Mincor Shareholders ACCEPT Wyloo's Offer.

• Wyloo holds 80.22%1 of the shares in Mincor and therefore it is unlikely that a competing proposal for Mincor will be made or announced.

• The $1.40 per share Wyloo Offer is best and final and unconditional; there will be no increase in consideration in the absence of a competing proposal.

• Wyloo intends to seek a delisting from the ASX following the close of the Offer if requirements for delisting can be satisfied (see the Supplementary Bidder's Statement dated 8 May 2023).

• Mincor's share price may fall when the Offer expires.

• There are risks associated with rejecting the Offer and remaining as a minority Shareholder of Mincor.

On June 26 Mincor Resources announced : "Mincor receives banking waiver."

Other nickel producers

First Quantum Minerals [TSX:FM] ( OTCPK: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.

No significant news for the month.

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

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

On June 7 Poseidon Nickel announced : "Updated Black Swan disseminated resource provides more nickel supporting restart." Highlights include:

Updated Black Swan Disseminated Mineral Resource Estimate (MRE) delivers:

• 26.3Mt at 0.72% nickel (previously 0.63%) for 189kt contained nickel; including:

• A 48% increase in the contained nickel in the Measured and Indicated Resources to 16Mt at 0.73% nickel for 118kt contained nickel...

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.

On June 21 Talon Metals announced :

Talon Metals submits Environmental Assessment Worksheet for proposed underground nickel mine to produce domestic supply of minerals for US Battery Supply Chain. Minnesota Department of Natural Resources will commence Environmental Review process for proposed underground mine, rail loadout facility and water treatment plant in central Minnesota.

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

No nickel news for the month.

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

No nickel news for the month.

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

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

On June 13 Premium Nickel Resources Corporation announced :

Premium Nickel Resources Ltd. announces financing transactions totalling approximately CAD$34 million.

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

On June 1 Canada Nickel Company announced : "Canada Nickel Continues to intersect high-grade, near-surface mineralization at Texmont Project." Highlights include:

• Assay results from final 11 drillholes confirm continued high-grade near-surface mineralization within thick mineralized sections. Seven of 11 holes intersected nickel grades > 1% and all 11 holes intersected nickel grades >0.5%. Hole TXT23-39 intersected 3.0 metres of 2.31% nickel within 15.0 metres of 0.83% nickel within 90.0 metres of 0.34% nickel starting at 12 metres. Hole TXT23-36 intersected 3.0 metres of 2.34% nickel within 12.0 metres of 1.06% nickel within 96.5 metres of 0.36% nickel starting at 4.5 metres.

On June 8 Canada Nickel Company announced : "Canada Nickel announces carbon storage testing results better than anticipated; integrated feasibility study expected in September."

On June 22 Canada Nickel Company announced : "Canada Nickel reports encouraging initial metallurgical results from its Texmont Project, announces consolidation of Texmont Region." Highlights include:

• Initial metallurgy work yields excellent nickel and cobalt recoveries producing high-grade concentrates: Nickel recoveries of 79 - 84%. Cobalt recoveries of 77 - 83%. Final concentrate grades of 18 - 28% nickel with up to 0.7% cobalt.

• Simple process can be used and would provide significant flexibility for potential toll milling opportunities.

• Company acquires 9,520 hectares of mining claims covering 20 kilometres of strike length with the potential to host Texmont style mineralization.

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

Ardea Resources [ASX:ARL] ( OTCPK:ARRRF )

On June 15 Ardea Resources announced : "Kalgoorlie Nickel Project mineralised neutraliser international patent application lodged."

Centaurus Metals Limited [ASX:CTM] ( OTCQX: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 June 19 Centaurus Metals Limited announced : "Centaurus acquires offtake rights over the Jaguar Nickel Sulphide Project in Brazil. Pivotal agreement opens up new opportunities for strategic funding and partnerships on unencumbered future volumes of low-carbon nickel sulphate for the rapidly growing battery materials sector." Highlights include:

• Centaurus acquires 100% of the offtake rights for all Jaguar nickel products from Vale in exchange for an increase in Vale's Net Operating Royalty (Royalty) over the Project.

• Royalty to be increased by 1.2% for nickel sulphate product and 1.25% for nickel concentrate and other products produced from Jaguar.

• Extinguishing Vale's offtake rights provides Centaurus with control and optionality over future marketing and sales of Jaguar's strategic, long life, low-greenhouse gas emission nickel sulphate product, which is expected to be strongly aligned with the rapidly growing Western battery market.

• Clean transaction structure allows the Company to preserve its cash reserves for ongoing DFS and project development activities and avoids any equity dilution of existing Centaurus shareholders while delivering enhanced funding and partnering flexibility.

• Significantly broadens the strategic pathways available to Centaurus to fund and further de-risk the development of Jaguar against the backdrop of robust demand growth for nickel sulphate products globally.

• With an increased life-of-mine royalty, Vale's alignment to the success of the Jaguar Project has been strengthened, benefiting all project stakeholders.

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

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

No news for the month.

Widgie Nickel [ASX:WIN] (WDGNF)

On June 26 Widgie Nickel announced : "High grade nickel results at Munda." Highlights include:

• High grade nickel mineralisation intercepts include: 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*.

• Exploration success with basal nickel mineralisation discovered 200m to the east of Munda deposit: MERC259 6m @ 0.81% Ni from 115m*. Incl. 2m @ 1.12% Ni from 115m*.

• Reinterpretation of Munda 3D geological model highlights parallel high grade mineralised shoots not previously identified.

• Munda mineralisation is desirable ore source being low in Arsenic**

• Mineralisation remains open at depth.

Sama Resources [TSXV: SME] [GR;8RS] ( OTCPK:SAMMF )

On June 27 Sama Resources announced : "Sama Resources doubles mineral resources at the Samapleu-Grata Nickel-Copper Deposits in Côte d'Ivoire, West Africa. Metallurgical copper recovery up to 88% in a 26% copper grade concentrate and up to 72% nickel recovery in a 13% nickel grade concentrate." Highlights include:

• Using an NSR cut-off-value of USD$16.34/tonne, the inferred and indicated mineral resource estimates now stand at 102 million tonnes and 15.0 million tonnes grading 0.25% nickel.

• Mineralized material is amenable to produce a 26% copper concentrate at up to 88% copper recovery and a 13% nickel concentrate at up to 72% nickel recovery.

• 60% of the palladium is recovered to the copper and nickel concentrates. The palladium grades are expected to yield attractive payment terms from smelters.

• A Revised Preliminary Economic Assessment for an open-pit production scenario at the Samapleu and Grata deposits will be produced by year-end.

Murchison Minerals [TSXV:MUR] ( OTCQB:MURMF )

On June 5 Murchison Minerals announced :

Recent wildfire activity on the North Shore of Quebec. Murchison Minerals Ltd. ("Murchison" or the "Company") (TSXV: MUR | OTCQB: MURMF) A state of emergency has been declared in parts of Quebec, due to wildfires threatening homes and businesses...

Power Nickel [TSXV:PNPN] ( CMETF )

On June 15 Power Nickel announced : "Power Nickel announces broad nickel intercepts from remaining drill holes at Nisk." Highlights include:

• 0.60% Ni, 0.39% Cu, 0.50 g/t Pd, and 0.11 g/t Pt over 31.86m in PN-23-035, including 1.18 % Ni, 0.8 % Cu, 1.14 g/t Pd, and 0.28 g/t Pt over 8.82m.

• 0.71% Ni, 0.37% Cu, and 0.85 g/t Pd over 10.05m in PN-23-033, including 1.25 % Ni, 0.36 % Cu, 1.41 g/t Pd, and 0.12 g/t Pt over 2.95m.

• 0.49% Ni, 0.13% Cu, and 0.46 g/t Pd over 8.08m in PN-23-034A.

Investors can view the company presentation here and a Trend Investing CEO interview here .

The Metals Company ( TMC )

No news for the month.

Other juniors

Artemis Resources [ASV:ARV], Australian Mines [ASX:AUZ], Azure Minerals [ASX:AZS] ( OTCPK:AZRMF ), Blackstone Minerals [ASX:BSX], Cassini Resources [ASX: CZI] ( OTC:CSSQF ), Class 1 Nickel and Technologies Ltd. [CSE:NICO] ( OTCQB:NICLF ), Electra Battery Materials [TSXV:ELBM] ( ELBMF ), Electric Royalties [TSXV:ELEC], Flying Nickel Mining Corp. [TSXV:FLYN], FPX Nickel [TSXV:FPX], Grid Metals Corp [TSXV:GRDM], Go Metals [CSE:GOCO] ( OTCPK:GOCOF ), Huntsman Exploration [TSXV:HMAN] ( OTCPK:BBBMF ), Inomin Mines [TSXV:MINE], Jervois Global Limited [ASX:JRV] ( OTCQX:JRVMF ), New Age Metals [TXV:NAM], Nickel Creek Platinum [TSX:NCP] ( OTCQX:NCPCF ), Nordic Nickel Limited [ASX:NNL], Pancontinental Resources Corporation [TSXV:PUC], Polymet Mining [TSX:POM], Renforth Resources [CSE:RFR] ( OTCQB:RFHRF ), Rox Resources [ASX:RXL], S2 Resources (ASX:S2R), Stillwater Critical Minerals [TSXV:PGE] ( OTCQB:PGEZF ), Sunrise Energy Metals [ASX:SRL] ( OTCQX:SREMF ), Surge Battery Metals Inc. [TSXV:NILI] [FRA:DJ5C] ( OTCPK:NILIF ), Talisman Mining Ltd. [ASX:TLM], Tartisan Nickel Corp. [CSE:TN] ( OTCQX:TTSRF ), Transition Metals [TSXV:XTM], URU Metals Ltd. [LSE:URU] [GR:NVRA], Wall Bridge Mining [TSX:WM], and Zeb Nickel Corp. [TSXV:ZBNI] ( OTCQB:ZBNIF ).

For further details see:

Nickel Miners News For The Month Of June 2023