ZBNIF - Nickel Miners News For The Month Of September 2022

Summary

• Nickel spot prices were slightly higher the last month and the LME inventory was slightly lower.
• Nickel market news - BMI: 72 new 45,500tpa nickel mines needed by 2035. LME: Most (metal) markets fundamentally remain tight at the moment.
• Nickel company news - Vale guides for significant increase in nickel and copper production this decade. IGO Limited announces record FY22 underlying EBITDA of A$717M, NPAT of A$331M.
• Talon Metals sets record massive sulphide intercept length of 23.44 meters grading 6.04% Ni, 2.85% Cu (7.58% NiEq) at the Tamarack Nickel Project.
• OZ Minerals - Havilah shareholders approve Kalkaroo Option, green light for West Musgrave Project. TMC subsidiary receives ISA recommendation to commence pilot nodule collection trials.

Welcome to the nickel miners news for September.

The past month saw slightly improved nickel prices and a busy month of news mostly for the nickel juniors.

Nickel price news

As of September 29, the nickel spot price was USD 9.93 , slightly higher than USD 9.73 last month. LME shows the price at USD 21,858/tonne . Nickel inventory at the London Metals Exchange [LME] was lower the past month at 51,792 tonnes (54,846 tonnes last month).

Nickel spot price chart - Current price = USD 9.93/lb

Nickel demand v supply charts

Norilsk Nickel forecasts a mild nickel surplus in 2022 (as of Aug. 2022)

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

UBS forecasts Year battery metals go into deficit (2021 chart) - Source: UBS courtesy Carlos Vincens LinkedIn

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 August 22 Fastmarkets reported :

Concerns build among traders about LME warehouse stocks. Physical metal and London Metal Exchange warrant traders have voiced increasing concerns to Fastmarkets over the current low stock levels in LME-listed warehouses globally. On-warrant base metals stocks in LME warehouses totaled 400,302 tonnes on Wednesday August 17, with total stocks standing at 579,979 tonnes. This represents a 58% decrease in total stocks since the beginning of the year, when stocks stood at 1,380,100 tonnes globally. "Most markets fundamentally remain tight at the moment; everywhere you look stocks are falling," a trader told Fastmarkets.

On September 1, Kallanish reported : "Ford urges Biden administration to expedite battery metals mining in US."

On September 1 Seeking Alpha reported :

Tesla appears to be ramping up interest in manufacturing in Canada. Tesla is continuing to look at potential advanced manufacturing sites in Canada, according to filings related to lobbying activities.

On September 6 Benchmark Mineral Intelligence reported :

...More than 300 new mines could need to be built over the next decade to meet the demand for electric vehicle and energy storage batteries, according to a Benchmark forecast. At least 384 new mines for graphite, lithium, nickel and cobalt are required to meet demand by 2035, based on average mine sizes in each industry, according to Benchmark. Taking into account recycling of raw materials, the number is around 336 mines... Yet another 72 mining projects with an average size of 42,500 tonnes will be required to meet battery demand for refined nickel, according to Benchmark.

Note: Bold emphasis by the author.

On September 12 capital.com reported :

Nickel price forecast: Price weakens as demand falls... Rising supply from Indonesia, the world's top nickel producer, has also weighed on the price of the metal that is used to make stainless steel, amid sluggish demand... Even though nickel inventories have decreased by 50% since the beginning of the year, this hasn't done much to stop the price from declining... On 9 September 2022, ANZ Research forecast nickel to average $25,350 a tonne in 2022, climbing to $25,800 in 2023 and $23,700 in 2024... Trading Economics expected nickel to trade at $24,290.62 a tonne by the end of this quarter, based on its global macro models and analysts' expectations as of 12 September. In addition, the economic data provider estimated the metal to average $28,767.63 in 12 months' time.

On September 15 Reuters reported :

Analysis: Industrial users flee LME nickel, deepening market fissures. Nickel deliverable against LME contract only 21% of market... in the wake of trade mayhem earlier this year... The exchange says it is working on potential improvements.

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 September 7, Vale SA announced :

Vale presents initiatives to achieve the full potential of Base Metals business and informs about estimates updates.

Vale production forecasts this decade for nickel and copper

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

On August 23, Norilsk Nickel announced : "Nornickel to add new innovative nickel and cobalt alloys to its range..."

On September 16, Norilsk Nickel announced : "Nornickel provides further update on noteholders' consent solicitation."

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 September 6, BHP Group announced :

Nickel West takes big steps on pathway to net zero. Nickel West has signed three renewable power purchase agreements (PPAs) to reduce greenhouse gas emissions across the asset. In April 2022, Nickel West signed a power deal with Enel Green Power, a leading multinational renewable energy company within the Enel Group, to underpin construction of the Flat Rocks Wind Farm near the Great Southern town of Kojonup, in Western Australia. At a tip height of 200 metres, the wind farm will comprise the 18 tallest wind turbines in Western Australia and is expected to produce 315 GWh per annum. Construction commenced in 2022 with first power anticipated by October 2023.

On September 20, BHP Group announced :

First large-scale Port Hedland solar battery hybrid project. BHP expects to halve emissions from the generation of electricity used to power its WA Iron Ore port facilities in Port Hedland by the end of 2024.

BHP's Nickel West operations

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

No nickel related news for the month.

Jinchuan Group [HK:2362]

No news for the month.

Sumitomo Metal Mining Co. ( OTCPK:SMMYY )

No news for the month.

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

On September 14, Anglo American announced : "Anglo American launches €745 million sustainability-linked bond."

Eramet ( OTCPK:ERMAY )

On September 6, Eramet announced : "Eramet commits to responsible development of the mining industry in Indonesia and to being audited against the IRMA Standard for Responsible Mining."

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

No news for the month.

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

On August 30, IGO Limited announced : "FY22 Cosmos and Forrestania resources and reserves."

On August 30, IGO Limited announced : "Strong annual financial results and expansion of IGO's nickel business." Highlights include:

• "Revenue for the year of A$903M, generating record underlying EBITDA1 of A$717M.
• Net profit after tax (NPAT) of A$331M, underscored by strong metal prices and IGO's investment in the Lithium Joint Venture.
• Strong first year contribution from the Lithium Joint Venture, delivering IGO a share of net profit of A$177M and an inaugural dividend payment of A$71M.
• Nova nickel production was within guidance at 26,675t and cash costs better than guided at A$1.95 per payable pound of nickel.
• Greenbushes annual spodumene production and unit costs of goods sold were in line with guidance at 1,135kt and A$238/t respectively.
• Successful commissioning of Train 1 at Kwinana, including first production of battery grade lithium hydroxide in May 2022.
• Strategic acquisition of Western Areas completed on 20 June 2022 delivering an expanded and diversified portfolio of nickel assets.
• Cash on balance sheet of A$367M at 30 June 2022 and A$900M in new debt facilities following the acquisition of Western Areas.
• Final fully franked dividend declared of 5c per share in accordance with IGO's Shareholder returns policy."

On August 30, IGO Limited announced : "Sustainability report 2022..."

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 September 16, Panoramic Resources announced : "2022 sustainability report..."

On September 16, Panoramic Resources announced :

2022 annual report. Victor Rajasooriar Managing Director and CEO stated, "...Our balance sheet is in good condition and should improve during FY2023 as operations ramp up... We have tried hard to make a positive contribution in our local community in the Kimberley and will continue this focus in the coming year. I look forward to leading our team as together we continue the safe and efficient ramp-up of the Savannah operation in FY2023. "

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

On August 31, Nickel Industries Limited announced : "Half year reports and dividend declaration." Highlights include:

Highlights for the 6 Months to 30 June 2022 (in US$ unless otherwise stated):

• "Nickel Industries Group Results: Sales revenue: Up 78% to $515.0M (6 months to 30 June 2021: $288.7M). Gross profit: Up 73% to $161.2M (6 months to 30 June 2021: $93.4M). Operating profit: Up 58% to $140.1M (6 months to 30 June 2021: $88.9M). Profit after tax: Up 43% to $118.4M (6 months to 30 June 2021: $83.0M). Profit after tax attributable to NIC: Up 42% to $92.4M (6 months to 30 June 2021: $65.3M)...
• 26,733 tonnes (21,386 tonnes attributable) of nickel metal produced in 195,706 tonnes of nickel pig iron.
• Acquired a 30% ownership of the Oracle Nickel RKEF project.
• Nickel Industries Group Balance Sheet: Net assets: $1,702.3M (31 December 2021: $1,329.9M)..."

On September 12, Nickel Industries Limited announced : "Hengjaya resource upgrade." Highlights include:

• "300 million dry metric tons ('dmt'), with an average grade of 1.22% nickel and 0.09% cobalt (using a nickel cut-off grade of 0.8%), have been estimated using the JORC Code 2012. This equates to approximately 3,700,000 tons of nickel metal and 270,000 tons of cobalt...

On September 16, Nickel Industries Limited announced :

Hengjaya mine resource upgrade additional information. Commenting on the upgraded Resource Managing Director Justin Werner said: "We are delighted to deliver a significant increase in our Resource at the Hengjaya Mine from 2.4 million tonnes to 3.7 million tonnes of contained nickel metal representing a 56% increase, with further upside remaining. This places the Hengjaya Mine amongst the top 10 global nickel resources, highlighting the world class size of the deposit..."

On September 21, Nickel Industries Limited announced : "Strategic cooperation agreement signed with QMB New Energy Materials." Highlights include:

• "Nickel Industries to supply 5-7 million wet metric tonnes per annum ('wmtpa') of limonite ore over the next 20 years..."

On September 28, Nickel Industries Limited announced : "Ownership interest in Oracle Nickel Project increased to 70%."

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

Owns the Kambalda Nickel Operations (includes the Cassini nickel sulphide mine), just south of Kambalda in Western Australia. First nickel concentrate production began in Q2 2022.

On August 31, Mincor Resources announced :

Financial report 30 June 2022... During the year, the Company's exploration activities primarily focused on drilling at the Golden Mile and Hartley prospects... In September 2021, the Company announced a $65.0 million Capital Raising, which comprised a $60.0 million Placement and a $5.0 million Share Purchase Plan ("SPP")... Following the Capital Raising, the Company replaced the previous $55.0 million Project Finance Facility with a $30.0 million Revolving Credit Facility ("RCF") with BNP Paribas. At 30 June 2022, the RCF was fully drawn... Nickel ore tonnes delivered to BHP in FY2022 totalled 66,627 tonnes of lower grade development ore at an average grade of 2.11% Ni for 1,404 tonnes of nickel in ore, which generated $36.8 million in gross revenue (before deduction of pricing adjustments associated with processing costs)...

Other nickel producers

First Quantum Minerals [TSX:FM] ( OTCPK:FQVLF ), Franco/Nevada [TSX:FNV] (FNV), MMG [HK:1208], South32 [ASX:S32] (SHTLF), Lundin Mining [TSX:LUN] (LUNMF), Nickel Asia Corporation [PSE:NIKL] ( OTC:NIKAY ), 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 September 26, Horizonte Minerals Plc announced :

Araguaia Nickel Project approved as a Strategic Minerals Project by the Brazilian Government. Jeremy Martin, CEO of Horizonte Minerals, commented: "The selection of the Araguaia Nickel Project as a Strategic Minerals Project further demonstrates the global importance of nickel as a critical metal of the future as well as the project's strategic importance to Brazil. We recognise the positive steps the Brazilian Government are taking to help expedite these strategically important projects and we look forward to working closely with them as we advance Araguaia towards production."

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

On September 16, Poseidon Nickel announced :

Annual financial report for the year ended 30 June 2022. During the year the Company raised $22 million (before costs) through a private placement of ordinary shares and raised a further $6 million under a share purchase plan. The Company ended the year with $11.1 million cash and cash equivalents...

On September 27, Poseidon Nickel announced : "Corporate and operations update." Highlights include:

Black Swan Feasibility Study

• "Breakthrough improvement in concentrate quality and saleability by utilising the existing Silver Swan ball mill to incorporate a rougher concentrate regrind step in the processing circuit.
• Recent locked-cycle flotation tests incorporating the regrind demonstrate production of a smelter grade concentrate with ~17% Ni, MgO below 6% and a Fe:MgO ratio of approximately 5:1...
• 1.1Mtpa Bankable Feasibility Study to be completed during 4Q 2022.
• Feasibility study work commenced on larger scale 2.2Mtpa rougher concentrate scenario and discussions ongoing with potential customers including Pure Battery Technologies."

Lake Johnston

• "Proposed 15,000m Western Ultramafic drilling program expected to commence in early 2023."

Windarra

• "Work progressing on the Mt Windarra nickel mining study to assess the economics of processing the ore at Black Swan.
• Green Gold obtaining samples for metallurgical testwork to confirm potential gold recovery improvements for the gold tailings project using proprietary technology."

Corporate

• "Continued strong inbound interest from potential offtake parties and financiers for Black Swan restart.
• Pure Battery Technologies has engaged Worley to undertake the feasibility study on the proposed pCAM refinery in Kalgoorlie.
• $120 million Federal Government grant for the proposed pCAM refinery confirmed."

Amur Minerals Corp. [LSE:AMC] [GR:A7L] ( OTCPK:AMMCF )

On September 9, Amur Minerals Corp. announced : "Interim results 2022..."

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 September 8, Talon Metals announced :

US EV battery supply chain: Talon Metals hits 29.39 meters grading 2.21% nickel equivalent at the Tamarack Nickel Project... Henri van Rooyen, CEO of Talon said: "While drilling continues in both the CGO West and Main Zone (the Tamarack Nickel Project's defined resource area) to further expand the Company's resource, our ongoing work towards a feasibility study continues, with the goal of first production in 2026."

On September 22, Talon Metals announced :

US EV battery supply chain: Talon Metals sets record massive sulphide intercept length of 23.44 meters grading 6.04% Ni, 2.85% Cu (7.58% NiEq) at the Tamarack Nickel Project...

On September 26, Talon Metals announced :

US EV battery supply chain: Talon and Fleet Space to pilot satellite-enabled mineral exploration technology in the U.S...

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

On July 28, Garibaldi Resources announced : "Garibaldi intersects semi-massive nickel sulphides below E&L..."

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

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

On August 26, OZ Minerals announced : "OZ Minerals 2022 half year financial results." Highlights include:

• "Net Profit After Tax (NPAT) of $109 million despite a challenging first half... Operating momentum regained and performance now improving. On track to meet group annual production and cost guidance.
• Net revenue of $909 million.
• EBITDA of $358 million at a healthy operating margin of 40% despite softer start and industry-wide inflationary pressure.
• Operating cash flows of $375 million; net cash position of $82 million.
• Increased working capital liquidity from $480 to $700 million.
• Growth strategy advancing, focused on long-life, low-cost assets in quality jurisdictions...
• 8 cents per share fully franked interim dividend maintained.
• $86 million cash benefit in second half from government TFE1 eligibility."

On August 26, OZ Minerals announced : "OZ Minerals set to ride electrification growth wave." Highlights include:

• "Global demand for copper and nickel set to reach unprecedented highs during this decade and beyond.
• OZ Minerals uniquely positioned for the oncoming electrification and decarbonisation era.
• Quality low operating cost, long-life assets in low-risk jurisdictions with: Brownfields expansions underway at Carrapateena and Prominent Hill. Greenfield projects well advanced, including West Musgrave.
• A unique copper and nickel growth pipeline with a clear pathway to more than double production."

On August 31, OZ Minerals announced : "Havilah shareholders approve Kalkaroo Option."

On September 23, OZ Minerals announced : "Green light for West Musgrave Project." Highlights include:

• "OZ Minerals makes Final Investment Decision on West Musgrave
• West Musgrave to be one of the world's largest, lowest cost, lowest emissions copper-nickel projects. All key regulatory approvals in place. Land access agreement signed with the Ngaanyatjarra people. First concentrate targeted for H2 2025, aligned with beginning of forecast nickel market deficit...
• Capacity to fully fund West Musgrave. New $1.2 billion syndicated facility supported by key relationship banks, subject to final binding agreements. Potential strategic partnership via a minority interest being explored.
• Feasibility Study finalised: More than 50% increase in project Net Present Value to ~$1.5 to ~$2.2 billion on capital of ~$1.7 billion; Robust IRR of 18 to 22% 3 ~$9.8 billion undiscounted cashflow over the operating life of mine. Processing capacity increased from 12.0 Mtpa to 13.5 Mtpa through mine planning and plant optimisation. Average annual production ~35,000 tpa nickel, ~41,000 tpa copper in the first five years. Average annual production ~28,000 tpa nickel and ~35,000 tpa copper over a 24-year operating life. Bottom quartile C1 cost of ~US$0.50/lb (Ni payable net of by-product credit) and ~US$(1.10)/lb (Cu payable net of by-product credit). One of the largest fully off-grid, hybrid renewable powered mines in the world with an initial ~80% renewable penetration."

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 September 1, St George Mining Ltd. announced :

For further details see:

Nickel Miners News For The Month Of September 2022