BHP - Nickel Miners News For The Month Of March 2023

2023-03-31 07:13:18 ET

Summary

• Nickel spot prices were lower the last month. Sprott launches Nickel Miners ETF.
• Nickel market news - EU Critical Raw Materials Act 10% of critical raw materials mined in Europe by 2030. Ford CEO says lithium and nickel are the key constraining commodities.
• Nickel company news - Wyloo Consolidated Investments makes online takeover bid for Mincor at A$1.40 cash per share. Horizonte Minerals Line 2 Feasibility Study contracts awarded to double production.
• Canada Nickel announces closing of Anglo American investment and bought deal public offering for total proceeds of C$44M. Centaurus Metals Jaguar Nickel Sulphide Project drills 20.4m @ 3.94% nickel.
• Power Nickel extends nickel mineralization in multiple holes - 1.40% Ni, 0.88% Cu, 0.09% Co, 2.52 g/t Palladium, 0.56g/t Platinum over 10.2m.

Welcome to the nickel miners news for March.

The past month saw a slow month of news from nickel producers and a busy month of news from the nickel juniors.

Nickel price news

As of March 30, the nickel spot price was USD 10.71 , lower than USD 11.27 last month. LME shows the price at USD 24,150/tonne . Nickel inventory at the London Metals Exchange [LME] was about the same the past month at 44,574 tonnes (44,442 tonnes last month).

Nickel spot price 5 year chart - Current price = USD 10.71/lb

Nickel demand v supply charts

Sumitomo Metal Mining forecasts (as of Nov. 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 February 28 Reuters reported :

European Investment Bank proposes new fund to counter US green subsidies - Spiegel... a new fund to counter subsidies offered by the U.S. Inflation Reduction Act, which pressure companies to move their production there...

On March 8 Euractiv reported : "LEAK: EU Commission wants 10% of critical raw materials mined in Europe."

On March 16 Benchmark Mineral Intelligence reported :

US loosens IRA requirements with EU mineral supply deal... European carmakers and raw material producers will "get access to US tax breaks," Ursula von der Leyen, president of the European Commission, said...

On March 16 the European Commission announced :

Critical Raw Materials: ensuring secure and sustainable supply chains for EU's green and digital future... The Regulation sets clear benchmarks for domestic capacities along the strategic raw material supply chain and to diversify EU supply by 2030:

• At least 10% of the EU's annual consumption for extraction ,
• At least 40% of the EU's annual consumption for processing ,
• At least 15% of the EU's annual consumption for recycling ,
• Not more than 65% of the Union's annual consumption of each strategic raw material at any relevant stage of processing from a single third country...

The proposed Regulation will be discussed and agreed by the European Parliament and the Council of the European Union before its adoption and entry into force.

On March 17 Fastmarkets reported : "EC names critical, strategic raw materials under proposed new act." All the battery metals were included.

On March 22 GlobeNewsWire reported : "Sprott launches Nickel Miners ETF. Latest addition to Sprott's expanding energy transition ETF suite."

On March 24 Fastmarkets reported :

Chinese auto price war drags down battery raw materials prices. An increasingly fierce price war in China's domestic automotive sector for electric vehicles (EVs) and traditional vehicles in recent months has dealt another blow to battery raw materials prices, sources told Fastmarkets... "Prices for traditional vehicles fell by as much as 100,000 yuan [around $14,600]. This has attracted many customers because this type of car is still more convenient to use compared with EVs," one source said.

On March 26 Yahoo Finance reported :

Ford CEO on EV transition... "First of all, batteries are the constraint here," Ford CEO Jim Farley told Yahoo Finance Live (video above). "Both lithium and nickel are really the key constraining commodities. We normally get those from all over the world - South America, Africa, Indonesia. We want to localize that in North America, not just the mining but the processing of the materials."

On March 29 Fastmarkets reported : "China's Lygend delivers first EV battery-grade nickel sulfate from Indonesia."

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 ) ( OTCPK:NILSY )

No significant nickel news for the month.

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 news for the month.

BHP's Nickel West operations

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

No nickel news for the month.

Jinchuan Group [HK:2362]

On March 24 Jinchuan Group Co., Ltd. announced :

Jinchuan International announces 2022 annual results. Revenue from cobalt sales soared 51% to US$160.9 million. Production and operation maintained at full capacity. Development project set to drive new growth... Revenue increased to US$881.6 million, up 6% year-on-year...

Sumitomo Metal Mining Co. ( OTCPK:SMMYY )

No news for the month.

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

On March 9 Anglo American announced :

Publication of Offering Circular... Offering Circular dated 9 March 2023 (the "Offering Circular") relating to the U.S.$15,000,000,000 Euro Medium Term Note Programme by Anglo American plc (LEI 549300S9XF92D1X8ME43) and Anglo American Capital plc (LEI TINT358G1SSHR3L3PW36).

Eramet [FRA:ERA] ( OTCPK:ERMAY )

No significant news for the month.

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

No news for the month.

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

No nickel 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.

On March 7 Panoramic Resources announced : "Positive Savannah North drill results below 1321 level." Highlights include:

• "Infill resource definition drilling to underpin the next phase of production development of the Savannah North ore body below the 1321 level is advancing.
• Results to date indicate mineralisation thicknesses and grades in line or ahead of expectations based on previous Resource modelling for this area of the mine.
• Better results returned to date include: KUD2058: 35.40m @ 1.59% Ni;0.69% Cu; 0.13% Co.KUD1982: 29.80m @ 2.19% Ni; 0.93% Cu; 0.17% Co.KUD2043: 29.25m @ 1.83% Ni; 0.82% Cu; 0.14% Co.KUD2057: 27.00m @ 1.86% Ni; 0.88% Cu; 0.15% Co.KUD2039: 26.70m @ 1.77%Ni; 0.65% Cu; 0.14% Co.KUD1981: 23.80m @ 2.03% Ni; 0.82% Cu; 0.16% Co. KUD2059: 23.25m @ 1.80% Ni; 0.80% Cu; 0.14% Co. KUD1980: 18.35m @ 1.56%Ni; 0.61% Cu; 0.13% Co. KUD2049: 16.80m @2.30% Ni; 0.50% Cu; 0.18% Co.
• Drilling is ongoing with the Savannah North mineralisation remaining open down-plunge towards the west in this area."

On March 16 Panoramic Resources announced : "Savannah Life of Mine update." Highlights include:

• "...Operational highlights of the Mine Plan include: Increased mine life of 12+ years to FY35 with the majority of ore sourced from the Savannah North orebody. Average annual production from FY24 to the end of FY35 of 9,402t Ni, 5,046t Cu and 714t Co metal in concentrate....
• Financial highlights of the Mine Plan include: Attractive Base Case financial outcomes, including pre-tax cash flow of A$1,426M and NPV8 of A$844M1. Consensus Case (using current consensus commodity price forecasts) delivers pre-tax cashflow of A$1,070M and NPV8 of A$623M2..."

On March 24 Panoramic Resources announced : "Savannah Life of Mine update-Amended."

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

On March 3 Nickel Industries Limited announced :

Results of Share Purchase Plan....the Company will issue 33,880,135 Shares at A$1.02 for total receipts of A$34,557,737.70. The Shares will be issued on 3 March 2023 and the Shares are expected to commence trading on 6 March 2023.

On March 6 Nickel Industries Limited announced : "Update on HPAL Project and additional nickel matte production." Highlights include:

• "Revised terms agreed for Dawn HPAL+ Project including higher nameplate production capacity and lower capital expenditure guarantee.
• Agreement to switch additional NPI production to nickel matte at Angel Nickel project."

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

On March 22 Nickel 28 announced :

Nickel 28 cautions shareholders to take no action in response to significantly undervalued, highly conditional and predatory mini-tender offer...

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

On March 21 Mincor Resources announced :

On market takeover bid for ordinary shares of Mincor Resources NL... on behalf of Wyloo Consolidated Investments Pty Ltd ACN 646 337 439 (the Bidder), pursuant to section 635 of the Corporations Act (Cth) 2001 (Corporations Act), offer to acquire on market at a price of A$1.40 cash per share (Offer Price), all of the fully paid ordinary shares (Mincor Shares)...

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.

On February 27 Horizonte Minerals Plc announced :

Horizonte Minerals Plc completes drawdown of us$50 million from second tranche under senior debt facilities... of US$346.2 million (the "Senior Debt Facility"). These funds are to continue the construction of Horizonte's 100%-owned Araguaia Nickel Project ("Araguaia" or "the Project") in Brazil.

On March 6 Horizonte Minerals Plc announced : "Line 2 Feasibility Study contracts awarded to double production at Araguaia." Highlights include:

• "Awarded Araguaia Line 2 Feasibility Study, aiming to double nickel production to 29,000 tpa.
• Anticipated low capital intensity through leveraging the shared infrastructure and services from Line 1...
• Trade off to allow a percentage of production to be converted to nickel matte.
• Targeting 2H 2023 publication of Line 2 Feasibility Study."

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

On March 3 Poseidon Nickel announced : "S&P Dow Jones Indices announces March 2023 Quarterly Rebalance of the S&P/ASX Indices."

On March 6 Poseidon Nickel announced : "Black Swan progressing to restart." Highlights include:

• "Resource update - in pit drill program completed with 20% of assays returned. Aim is to increase the mining inventory to further extend the mine life and optimise start up feed schedule.
• Offtake - strong interest received, shortlisted parties in data room and undertaking site visits, as required.
• Debt Financing - the most attractive debt terms have been offered by offtakers.
• Timetable - Restart Final Investment Decision expected Q2 2023.
• Expansion Project - metallurgical testwork well underway to establish optimum metallurgical recovery and concentrate nickel grade, samples being made for testing by potential customers.
• Lake Johnston drilling - targeting early April 2023 start.
• Funds - well funded to FID with cash at bank of ~$11.5 million as at 6 March 2023 (unaudited)."

On March 14 Poseidon Nickel announced : "Interim financial report for the six months ended 31 December 2022."

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

Tamarack is a high grade nickel-copper-cobalt project located in Minnnesota, 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 March 28 Talon Metals announced :

Talon Metals and EnviCore partner to reduce Mine Waste and Pioneer "Full Value Mining" approach. Trialing new technology for producing low-carbon building materials instead of waste...

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

On March 10 St George Mining Ltd. announced : "Half yearly report for the half year ended 31 December 2022."

On March 29 St George Mining Ltd. announced :

Wide and continuous intervals of pegmatite intersected in drilling at mt alexander project. 121m continuous pegmatite interval in diamond drill hole MAD213 testing the Manta seismic reflector, with a total of 225m of pegmatites intersected in the hole...

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

On March 6 Queensland Pacific Metals announced : "Debt financing update." Highlights include:

• "Export Development Canada increases indicative debt financing commitment to $400m (previously $200m).
• Northern Australia Infrastructure Facility continues to progress Due Diligence with a potential debt financing commitment of up to $250 million.
• These two when combined with the previous indicative debt financing commitment from Export Finance Australia ($250m) means QPM now has total potential indicative debt financing commitments of up to $900m.
• Discussions continue to advance in line with expected timeframes with a range of other potential financiers including other Export Credit Agencies and Commercial Banks."

On March 7 Queensland Pacific Metals announced : "Significant investment project status Awarded to TECH Project..."

On March 13 Queensland Pacific Metals announced : "Financial report for the half?year ended 31 December 2022."

On March 23 Queensland Pacific Metals announced : "Ore supply agreement executed with SMGM." Highlights include:

• "Binding ore supply agreement entered into with Société Minière Georges Montagnat ("SMGM"), a significant New Caledonian mining company, for up to 200,000 wmt per annum.
• Targeting a typical limonite ore specification of 1.5% Ni and 0.18% Co.
• Ten year ore supply term.
• Additional diversification to existing ore supply agreements with Société Le Nickel ("SLN") and Société des Mines de la Tontouta ("SMT")."

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

On March 17 Premium Nickel Resources Corporation announced :

Premium Nickel Resources Ltd. announces extension of CAD $7 million Promissory Note...

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

On March 2 Canada Nickel Company announced :

Canada Nickel announces closing of Anglo American Investment and Bought Deal Public Offering for total proceeds of C$44 million... The Company also concurrently closed its "bought deal" prospectus offering (the "Offering") for aggregate gross proceeds of C$18,208,763. Under the Offering, the Company sold the following: An aggregate of 7,462,500 Common Shares at a price of C$1.77 per Common Share. An aggregate of 1,748,300 Common Shares issued as "flow-through shares" (the "FT Shares") within the meaning of the Income Tax Act (Canada) at a price of C$2.86 per FT Share.

On March 6 Canada Nickel Company announced : "Canada Nickel confirmshigh grade near-surface mineralization at Texmont." Highlights include:

• "Nine of first twelve holes with intervals of greater than 1% nickel.
• First twelve holes confirm high grade mineralization over 400 metres of strike length that remains open to the north and at depth.
• High grade intervals within thick mineralized sections include: Hole 22-03: 5.2 metres of 2.60% nickel within 21.0 metres of 1.22% nickel within 91.5 metres of 0.50% nickel from 58.5 metres. Hole 22-06: 4.0 metres of 2.43% nickel within 12.0 metres of 1.45% nickel within 28.0 metres of 0.77% nickel from 76.5 metres."

On March 15 Canada Nickel Company announced : "Canada Nickel demonstrates robust nickel recoveries at the Reid Ultramafic Nickel Project, announces closing of Texmont acquisition." Highlights include:

• "...Overall nickel recovery of 63% with half of recovered nickel reporting to nickel sulphide concentrate grading 60%..."

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

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

On March 10 Ardea Resources announced : "Interim financial report half-year ended 31 December 2022..."

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 March 15 Centaurus Metals Limited announced : "Strong results from Jaguar Pilot Plant testwork support pathway to battery-grade nickel sulphate product. Successful pilot program supports development strategy, with piloting to continue until the end of April resulting in the implementation of a revised schedule that will see the DFS completed in late Q4 2023." Highlights include:

• "Comprehensive mineralogical testing and analysis of the Jaguar ore completed to support process flowsheet development.
• Extensive flotation testwork demonstrated over 94% sulphide nickel recovery to concentrate (equivalent total nickel recovery of 78% based on average head grade of current Mineral Resource Estimate), with over 800kg of high-quality concentrate produced to feed the Jaguar Pilot Plant.
• Pilot plant campaign is progressing well after initial delays due to unavailability of testing facilities at ALS Metallurgy in Perth, WA. Two of the four phases of work have now been completed with the third phase currently underway...
• This is further supported by the significant endowment of the Jaguar deposit (JORC MRE: 938,000t of contained nickel with 730,000t of contained nickel in the Measured and Indicated categories).
• The pilot work will continue through to the end of April... In light of this, the DFS delivery date is scheduled towards the end of Q4 2023 and the Final Investment Decision ( FID ) has been scheduled for Q3 2024...
• Centaurus remains well-funded with approximately $34 million in cash at the end of the December Quarter."

On March 29 Centaurus Metals Limited announced :

Outstanding intercept in deepest Jaguar drilling to date: 20.4m @ 3.94% nickel. High-grade mineralisation intersected in step-out hole at Jaguar South 120m below previous deepest drilling, forming part of a new high-grade shoot extending over 180m of strike and remaining open down-plunge...

Widgie Nickel [ASX:WIN]

On March 10 Widgie Nickel announced : "Half-year report for the 6 months ended 31 December 2022."

On March 29 Widgie Nickel announced : "Maiden Resource proves up Faraday DSO starter opportunity." Highlights include:

• "Maiden independent Faraday lithium Mineral Resource Estimate (MRE) of481,000t @ 0.59% Li2O(0.30% Li2O cut-off) in Southern Starter Pit location to a maximum depth of 65m.
• High grade core of106,000t @ 0.87% Li2Odefined (at 0.80% Li2O cut-off)...
• Lithium activities are consistent with Widgie's strategy to create value for shareholders by commercialising our expanding mineral inventory which now contains a pipeline of lithium and nickel sulphide development opportunities."

For further details see:

Nickel Miners News For The Month Of March 2023