Nickel Miners News For The Month Of November 2021

Summary

• Nickel spot prices were slightly higher in November, LME inventory was significantly lower.
• Nickel market news - Cobalt and nickel supply tightness will challenge the electrification of transport - IFA panelists.
• Nickel company news - Sumitomo Metal Mining will start recycling batteries. Vale to buy back up to a maximum of 200 million shares.
• Horizonte Minerals obtains a senior secured project finance facility of up to US$346.2 million to fund the construction and development of the Araguaia Nickel project in Brazil.
• Poseidon Nickel announces maiden Indicated Resource at Golden Swan of 111,600t @ 4.7% Ni for 5,200t contained Ni.
• I do much more than just articles at Trend Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

shkyo30/iStock via Getty Images

Welcome to the nickel miners news for November. The past month saw a busy month of news from the nickel producers and juniors.

Nickel price news

As of November 26, the nickel spot price was USD 9.15, up slightly from USD 9.00 last month. LME shows the price at USD 20,230/tonne. Nickel inventory at the London Metals Exchange [LME] was again significantly lower than last month at 115,446 tonnes (143,334 tonnes last month).

Nickel spot prices - Long term chart - Current price = USD 9.15/lb

Source: Mining.com

Nickel Long-term Price Projection

Source: Kalkine Media courtesy DIS

Nickel demand v supply charts

Battery nickel demand set to surge over ten fold this decade as the EV boom takes off

Source: Bloomberg

2019 to 2030 'battery' demand increase forecast for EV metals - Nickel 'battery' demand forecast to increase by 14x

Source: Courtesy BloombergNEF

Benchmark Mineral Intelligence - Simon Moores's - forecasts

Source: Benchmark Mineral Intelligence Twitter

BloombergNEF EV metals demand forecast

Source: BloombergNEF

UBS forecasts Year battery metals go into deficit

Source: UBS courtesy Carlos Vincens LinkedIn

Nickel demand v supply forecast - Deficits widening from 2021/22 onwards

Source: Garibaldi Resources March 2021 presentation and courtesy of Wood Mackenzie

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

On June 30 Mining.com reported:

CHART: Study predicts over 400% increase in copper, lithium, nickel battery demand. BNEF predicts annual demand for lithium-ion batteries will pass 2.7 terawatt-hours per year by 2030 – a 35% increase from the analytics company’s forecast made last year.

Nickel Market News

On October 26 PRNewswire reported:

Appian sells Brazilian companies, Atlantic Nickel and Mineração Vale Verde, to Sibanye-Stillwater for US$1.0 billion and additional royalty. Appian agrees sale of wholly owned Atlantic Nickel and Mineração Vale Verde to Sibanye-Stillwater for: US$1.0 billion in cash, and; An additional 5.0% NSR royalty on production from the underground expansion at Atlantic Nickel....... Appian will retain ongoing investment exposure to the upside potential of both assets, through:- A 2.75% NSR royalty at Atlantic Nickel, which will step up to 7.75% on payable metal produced upon completion of mining the open pit Reserve;- A 35% stream on gross gold revenues at Mineração Vale Verde, and;- The 100% ownership of the Pereiro Velho gold exploration property post-acquisition.

On November 4 Seeking Alpha reported: "New VanEck Green Metals ETF will invest in metals used in ecofriendly energy production.

• VanEck plans to launch the VanEck Green Metals ETF (OTC:GMET), which aims to invest in companies involved in the production, refining, processing and recycling of metals used in clean-energy production.
• The company wrote in a U.S. Securities Exchange Commission filing that such rare-earth and strategic metals will help "enable the energy transition from fossil fuels to cleaner energy sources and technologies.”
• In order for a security to qualify for GMET's portfolio, a business must either generate at least 50% of revenues from green metals or have mining projects with the potential to eventually do so.
• The exchange traded fund plans to track the MVIS Global Clean-Tech Metals Index, which has returned 69.5% over the past year. That beats the benchmark SPDR S&P 500 Trust ETF (NYSEARCA:SPY), which has gained 38.3% over the same period.
• The MVIS Global Clean-Tech Metals Index currently includes 45 stocks, including top components Freeport-McMoRan (NYSE:FCX) weighted at 9.2%, Glencore (OTCPK:GLCNF) at 8.6% and Ganfeng Lithium (OTCPK:GNENY) weighted at 6.2%.
• The index provides exposure to 16 countries, with top weightings in China, the United States and Canada, weighted at 30%, 12.7%, and 10.8%, respectively."

On November 4 Reuters reported:

China's nonferrous group suggests commercial reserves for cobalt, nickel - media. China should improve its capability to secure nickel and cobalt resources and set up commercial reserves for the metals, the Shanghai Securities News [SSN] reported on Thursday, citing an official with the China Nonferrous Metals Industry Association......China's domestic nickel and cobalt production only accounts for 5% and 2%, respectively, of its total consumption. He suggested the industry should "explore the establishment of commercial reserves of nickel and cobalt" and form a system that "combines strategic reserves and commercial reserves".

On November 9 Argus Media reported:

Electric vehicles to fuel Co-Li demand: China Easpring......The two main technical options in the electric vehicle power battery industry - LFP batteries and NCM/NCA ternary batteries - will coexist and grow synchronously in the future in view of their respective advantages, Wang said. The NCM/NCA battery is typically used in long-range vehicles in temperate regions, while the LFP battery is typically used in low-range vehicles in tropical regions. Global NEV sales are forecast to reach 17mn and 42.5mn in 2025 and 2030, up from 3.24mn in 2020. This will boost the installed volume of power batteries to 719GWh in 2025 and 1,797GWh in 2030, up from 137GWh in 2020, with the shares of LFP/NCM [NCA] forecast to be 30pc/70pc in 2025 and 50pc/50pc in 2030, from 18pc/82pc in 2020, Wang said.

On November 10 Benchmark Mineral Intelligence reported:

Can the auto industry meet ambitious COP26 pledges? A declaration at the Glasgow climate conference that seeks to phase out sales of petrol and diesel vehicles by 2040 would mean more than a thirty-fold increase in annual electric vehicle battery demand and a substantial increase in raw material requirements, according to analysis by Benchmark Mineral Intelligence. The signatories to the Glasgow declaration, which included General Motors, Volvo, Ford and Mercedes-Benz, said they would “work towards” all sales of new cars and vans being zero emission globally by 2040, and no later than 2035 in “leading markets.” If the target is achieved globally it would mean a substantial increase in demand for battery raw materials such as lithium and nickel, according to Benchmark Mineral Intelligence. Benchmark estimates that if all cars and vans sold in 2040 were electric it would represent almost 8,400 GWh of lithium ion battery demand. In reality, this target will be difficult to meet, with Benchmark already forecasting 6,200 GWh of battery demand from the entire electric vehicle market in 2040. To meet the goals set out in the COP26 Glasgow declaration by 2040 would require over 7 million tonnes of lithium (LCE) annually, which is 17 times more than lithium chemical production in 2021, according to Benchmark’s Lithium Forecast. It would also require over 5 million tonnes of nickel sulphate, which Benchmark’s Nickel Forecast shows is 19 times more than nickel sulphate production in 2021. At the moment there is insufficient investment into raw material supply to meet battery demand in 2030 let alone 2040, Simon Moores, CEO of Benchmark Mineral Intelligence, said. “Right now lithium demand is growing at three times the speed of lithium supply,” he said. “That’s a big problem that needs to be solved.” While building a battery cell production facility can take two years, it takes a minimum of five years to bring on a new lithium mine.

On November 15, Talon Metals announced:

Talon commends U.S. action on battery supply chain as President Biden signs Bipartisan Infrastructure Bill, adds nickel to critical mineral list.

On November 18 Fastmarkets reported:

Cobalt and nickel supply tightness will challenge the electrification of transport - IFA panelists. Production of key battery raw materials cobalt and nickel will remain tight and will pose challenges to the electrification of transport....."We’ll see 50-100% growth rate for the next 2-3 years and the big issue is getting enough nickel in the right form temporarily; it’s a huge opportunity going forward,” Selby added. “I think lithium iron phosphate [LFP] batteries are going to dominate...

On November 26 Fastmarkets reported:

China’s nickel sulfate market quiet amid weak demand. China’s nickel sulfate market was unchanged in the week to Friday November 26 despite high prices for nickel on the London Metals Exchange. Spot trading activity was minimal during the pricing period due to weak demand for downstream precursor products, sources said.

Nickel Company News

Producers

Vale S.A. (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 October 28, Vale S.A. announced:

Vale’s performance in 3Q21. In 3Q21, Vale reported a proforma adjusted EBITDA of US$ 7.109 billion, US$ 4.130 billion lower than 2Q21, mainly due to lower revenues in Ferrous Minerals and Base Metals business, following the lower iron ore realized prices and the lower nickel byproducts revenues, the later impacted by the labor disruption in Sudbury. Cash generation in the quarter reached US$ 7.765 billion, US$ 1.238 billion higher than 2Q21. Nickel business EBITDA was US$ 99 million in 3Q21, down US$ 331 million vs. 2Q21, mainly due to the labor disruptions in Sudbury, resulting in lower nickel sales volumes and byproducts credits, primarily copper, PGMs and precious metals......

On October 28, Vale S.A. announced:

Vale announces new share buyback program.....The new buyback program will be limited to a maximum of 200,000,000 common shares and their respective ADRs, representing up to 4.1% of the total number of outstanding shares, based on the current shareholding position. The program will be carried out over a period of up to 18 months.

On October 29, Vale S.A. announced: "Vale informs on the completion of the share buyback program approved in April 2021."

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

On November 18, Norilsk Nickel announced:

Nornickel settles dispute with Botswana Government and BCL. As part of the settlement, the parties have waived any and all claims against each other in connection with the transaction and Nornickel has received an agreed cash compensation.....

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. BHP's new Kwinana Nickel Refinery is due for completion in the first half of FY2021, with first product due in the second half of FY2021, Stage 1 production is aimed to be 100ktpa nickel sulphate.

No nickel related news for the month.

BHP's Nickel West operations

Source: BHP Group/ Nickel West

Jinchuan Group [HK:2362]

On November 5, Jinchuan Group announced: "Operational update for the nine months ended 30 September 2021."

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

On October 28, Glencore announced: "Third quarter 2021 production report." Highlights include:

Production Highlights

• "Own sourced nickel production of 71,100 tonnes was 10,700 tonnes (13%) lower than the comparable 2020 period due to planned maintenance at Murrin Murrin and various operating issues at Koniambo......"

On November 17, Glencore announced:

Evolution Mining to acquire Ernest Henry Mining from Glencore..... Glencore will receive A$1 billion, comprising A$800 million on the closing of the transaction and a further A$200 million payable 12 months after the transaction closes.

Sumitomo Metal Mining Co. (OTCPK:SMMYY)

On November 4, Sumitomo Metal Mining Co. announced:

Acquisition of 10.1% stake in Kenorland Minerals Ltd.. Sumitomo Metal Mining Canada Ltd. [SMCL], a wholly owned subsidiary of Sumitomo Metal Mining Co., Ltd. [SMM] and Kenorland Minerals Ltd. (Kenorland Minerals), a Canadian exploration company headquartered in Vancouver, Canada, have agreed that SMCL will acquire a 10.1% stake in Kenorland Minerals by subscribing to a third-party allotment of new shares. The consideration for the share acquisition is approximately C$5.2 million.

On November 8, Sumitomo Metal Mining Co. announced:

FY2021 capital expenditure and total investment plans. Sumitomo Metal Mining Co., Ltd. [SMM] plans to undertake a total of 78.1 billion yen on capital expenditures, on a consolidated basis during the 2021 fiscal year (April 1, 2021 — March 31, 2022). The total investment represents a 123% increase from that of FY2020.

On November 8, Sumitomo Metal Mining Co. announced:

Consolidated financial results for the second quarter ended September30, 2021[IFRS].

On November 18, Sumitomo Metal Mining Co. announced: "FY2021 2nd quarter progress of business strategy."

On November 24 Nikkei Asia reported:

EV batteries: Cheaper way to recycle material developed in Japan. Sumitomo Metal's method promises more reliable supply of cobalt, lithium and copper. Sumitomo Metal Mining will start recycling cobalt, lithium and other key materials from used electric vehicle batteries, employing a cost-competitive proprietary process to extract high-grade metals.

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

No nickel related news for the month.

Eramet (OTCPK:ERMAY)

On November 4, Eramet announced:

Eramet: Exercise of the put option for the sale of the Sandouville hydrometallurgical plant and signing of the Share Purchase Agreement with Sibanye-Stillwater.

On November 8, Eramet announced: "Unlocking our expansion into metals for the energy transition."

Source: Eramet website

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

On November 3, Sherritt International announced: "Sherritt outlines Moa JV expansion strategy and reports Q3 results." Highlights include:

Selected Q3 2021 Developments

• "Received US$10 million in distributions from the Moa JV representing Sherritt’s 50% share of distributions declared by the Moa JV. Through September 30, Sherritt has received a total of US$43 million in direct and re-directed distributions from the Moa JV and its partner.
• Adjusted EBITDA^[1] was $17.6 million, up 14% from last year. The higher total was indicative of improved nickel and cobalt prices, but offset by increased input costs, $3.1 million in other contractual benefits expenses and $0.5 million of accelerated share-based compensation expenses, both of which relate to the departure of senior executives.
• Sherritt’s share of finished nickel production at the Moa JV was 2,908 tonnes, down 22% from last year while Sherritt’s share of finished cobalt production was 334 tonnes, down 18%. Finished nickel and cobalt production were negatively impacted by a combination of factors, including the spread of COVID-19, timing of the full-facility shutdown at the refinery in Fort Saskatchewan, Alberta, and unplanned maintenance activities that temporarily disrupted production activities. All production has since resumed to normal, and Sherritt has adjusted its production guidance for 2021 to reflect Q3 developments and anticipated production for the balance of the year.
• Net Direct Cash Cost [NDCC]^[1] at the Moa JV was US$4.53/lb, up 12% from last year. Despite a 52% improvement in cobalt by-product credits, unit costs per pound of finished nickel sold were impacted by the 126% increase in sulphur prices, 69% increase in fuel oil prices, and 59% increase in natural gas prices as well as by lower sales volumes. NDCC guidance for 2021 remains unchanged at US$4.25 to $4.75 per pound of nickel sold as the recent rise in cobalt prices partially offsets the rise in input costs.
• Received US$6.4 million in Cuban energy payments. Sherritt anticipates continued variability in the timing of collections through the remainder of 2021, and is working with its Cuban partners to ensure timely receipts.
• Sherritt released its 2020 Sustainability Report that featured a number of upgraded environmental, social, and governance [ESG] targets, including achieving net zero greenhouse emissions by 2050, obtaining 15% of overall energy from renewable sources by 2030, reducing nitrogen oxide emission intensity by 10% by 2024, and increasing the number of women in the workforce to 36% by 2030.
• Named Yasmin Gabriel as Chief Financial Officer, Greg Honig as Chief Commercial Officer, and Chad Ross as Chief Human Resources Officer as part of senior leadership changes. The appointments underscore Sherritt’s two-pronged growth strategy focused on capitalizing on the accelerating demand for high-purity nickel and cobalt from the electric vehicle industry and commercializing innovative process technology solutions for resources companies looking to improve their environmental performance and increase economic value....."

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

On November 1, IGO Limited announced: "Quarterly report period ended 30 September 2021. IGO delivers solid start to FY22." Highlights include:

• "Group sales revenue of A$189M and underlying EBITDA of A$97M, resulting in solid EBITDA margins of 51% for the Quarter.
• Net Profit after Tax of A$46M, which includes A$13M IGO share of Lithium JV Net Profit.
• Cash flows from operating activities of A$131M, generating an underlying free cash flow of A$111M for the Quarter, in line with the prior quarter.
• Nova’s quarterly production and cash costs were both within or better than guidance.
• Greenbushes Chemical Grade Plant 2 commissioned and Chemical Grade Plant 3 EPCM contract awarded to Lycopodium.
• Kwinana Refinery commissioning with first lithium hydroxide produced.
• Acquisition of Silver Knight nickel-copper-cobalt sulphide deposit from Creasy Group and formation of exploration joint venture completed in October.
• Payment of FY21 final dividend of A$0.10 per share fully franked, totaling A$76M.
• Cash on balance sheet of A$552M and no debt with established A$450M debt facility remaining undrawn."

On November 9, IGO Limited announced: "IGO to farm in to the Broken Hill Ni-Cu-PGM Project, NSW." Highlights include:

• "IGO can spend $18 million over 8 years to earn a 75% interest in EL7390 and EL8234 in two stages: $6 million to earn a 51% interest and a further $12 million to earn a further 24% interest.
• Minimum expenditure of $500,000 before withdrawal.
• Impact to retain 100% of its other extensive ground holdings in the Broken Hill area with significant potential for copper-silver-zinc-lead mineralization.
• Impact to increase its focus on its Western Australian assets, in particular the Doonia gold project where drilling will commence by early December and the Arkun Ni Cu-PGM project."

Western Areas Ltd. [ASX:WSA](OTCPK:WNARF)

On November 8, Western Areas Ltd. announced:

Odysseus mine development update. Western Areas Ltd is pleased to provide an update on development activities at the long-life Odysseus nickel mine. The development of Odysseus continues to ramp up positively, with underground mining contractor Barminco achieving a record-breaking 498 metres of lateral and decline development last month. It follows a significant milestone achieved at Odysseus early last month, with the production of first ore (see ASX announcement dated 5 October 2021).

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 Mines Ltd [ASX:NIC]

On November 17, Nickel Mines Ltd. announced:

Angel Nickel Project well ahead of schedule. The Directors of Nickel Mines Limited (‘Nickel Mines’ or ‘the Company’) are pleased to advise that first Nickel Pig Iron (‘NPI’) production from its 80% owned Angel Nickel Project (‘ANI’) within the Indonesia Weda Bay Industrial Park (‘IWIP’) is now expected in the first quarter of 2022, well ahead of the October 2022 contractual delivery date for the commencement of commissioning.....

On November 22, Nickel Mines Ltd. announced: "MoU secures next phase of growth...."

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

On November 9, Nickel 28 Capital Corp. announced: "Nickel 28 announces Q3 2021 financial results." Highlights include:

The Company’s principal asset Ramu continued to have another strong quarter. Highlights from Ramu during the quarter include:

• "Total project revenue in YTD 2021 of over US$560 million, as a result of continued strong nickel/cobalt commodity prices and improved payability for mixed hydroxide (“MHP”).
• Completed repayment of the Company’s operating debt from Ramu’s half year results, the first of two debt tranches from Ramu, which triggered the payment of attributable cash-flow to the Company.
• Nickel 28’s cash distribution from Ramu in H1 2021 was US$19.3 million of which $10.2 million was used to retire the operating debt and $5.9 million was used to pay down the construction debt netting the balance of $3.2 million which has been received by Nickel 28.
• Ramu produced 8,649 tonnes of contained nickel and 841 tonnes of contained cobalt in MHP in Q3 with YTD production of 25,227 tonnes of nickel and 2,359 tonnes of cobalt contained in MHP placing Ramu as the world’s largest producer of nickel and cobalt in MHP.
• Ramu actual cash costs of US$1.55 per pound of nickel produced as MHP (net of byproduct credits) in Q3 and YTD cash costs of US$ 2.00 per pound of nickel, placing Ramu in the top quartile of global nickel producers and the lowest cost producer from HPAL operations according to Wood Mackenzie.
• Ramu sales of 8,084 tonnes of contained nickel in Q3 on track to exceed 2020 sales."

On November 15, Nickel 28 Capital Corp. announced:

Nickel 28 announces restart of Ramu Mine. Nickel 28 Capital Corp. has been notified by Metallurgical Corporation of China (“MCC”), our operating partner at the Ramu mine, that the Ramu nickel-cobalt operation’s mine has re-started production following the two week pause in operations announced on October 27, 2021. The Company does not expect that the recent pause in operations will have a material impact on production guidance.

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).

Nickel juniors

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

Owns the Cassini nickel sulphide mine, just south of Kambalda in Western Australia. First nickel concentrate is set to begin in Q2 2022.

On October 29, Mincor Resources announced:

$30M revolving credit facility ready for draw-down. Binding documentation now executed with BNP Paribas for new facility replacing the $55m Project Finance Facility, supporting Mincor’s growth pathway.

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 November 12, Horizonte announced: "Quarterly financial results for the three months ended 30 September 2021." Highlights include:

• "Credit approval from a syndicate of international financial institutions (the “Senior Lenders”) and two Export Credit Agencies (“ECAs”) for a senior secured project finance facility (the “Senior Debt Facility”) of up to US$346.2 million to fund the construction and development of Araguaia.
• Significant progress on key Araguaia execution preparation activities, including competitive tendering for supply of key processing equipment, electric furnace and project management [EPCM] services.
• Araguaia Operational Readiness Plan well advanced with all key permits in place for commencement of construction.
• Key environmental and social programs continuing in preparation for construction phase at Araguaia.
• Mobilization of Head of Projects to Brazil and appointment of Engineering, Community, Health and Safety Managers continues the build out of the project execution team.
• Publication of 2020 Sustainability Report in accordance with Global Reporting Initiative.
• Strong cash balance of £18.3 million maintained."

On November 23, Horizonte announced: "Equity fundraise of approximately US$197 million including placing of approximately US$75 million and proposed open offer to qualifying shareholders....In addition to this Equity Fundraise, and the Glencore Subscription, the Company intends to raise a further:

• "US$436.2 million through certain debt and other financing arrangements.
• Up to US$8 million (before expenses) through an open offer to Qualifying Shareholders."

On November 23, Horizonte announced: "Horizonte announces proposed US$633 million funding package to fully fund Araguaia into production."

On November 24, Horizonte announced: "Result of placing and equity fundraise."

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

On October 29, Poseidon Nickel announced: "Quarterly report 30 September 2021." Highlights include:

Fill the Mill Strategy – Black Swan Restart

• "New strategy focused on restarting the concentrator at Black Swan derated to 1.1Mtpa to maximise production of nickel given strong outlook for the nickel price
• Metallurgical testwork on blended ore sources well underway, as is Bankable Feasibility Study."

Golden Swan Resource Drilling Assays

• "Final assays for the Golden Swan Resource Drilling Program received
• Maiden resource released late October 2021."

Silver Swan and Southern Terrace Exploration

• "Drilling at Silver Swan and Southern Terrace continued."

Silver Swan Tailings (SST) Maiden Resource

• "Maiden resource of 675kt grading 0.92% Ni and 683 ppm Co containing 6,200 tonnes of nickel and 460 tonnes of cobalt."

Lake Johnston

• "Scoping Study underway to determine estimated capital for 1.5Mtpa plant refurbishment and operating cost estimates.
• Detailed review of historical exploration data has identified new exploration targets, planning underway for drilling to commence in 2nd half FY22......

On November 9, Poseidon Nickel announced: "More high grade intersections at Silver Swan."

On November 12, Poseidon Nickel announced: "Golden Swan maiden resource – additional information." Highlights include:

• "Indicated Resource at Golden Swan is 111,600t @ 4.7% Ni for 5,200t contained Ni.
• Total Indicated and Inferred Resource at Golden Swan is 160,000t @ 3.9% Ni for 6,250t contained Ni.
• Golden Swan adds significant Ni tonnes to the high-grade inventory at Black Swan with Indicated Resources of high-grade at Black Swan now 219,600t @ 7% Ni for 15,330t of contained Ni."

On November 15, Poseidon Nickel announced: "Black Swan restart project update." Highlights include:

Fill the Mill Strategy

• "Restart based on feeding the 1.1Mtpa processing circuit with a combination of feed sources to maximise nickel units produced."

Growing Mining Inventory to support filling the mill for longer

• "New high-grade Golden Swan discovery adds 6,300t contained Ni to Black Swan Resources.
• Silver Swan drilling underway, aiming to increase high-grade mining inventory.
• Black Swan Disseminated resource drilling underway, aim is to increase quantity of serpentinite ore."

Metallurgical test work underway

• "Previous test work confirms Silver Swan tailings improves Fe:MgO ratio of concentrate.
• Current program designed to determine most suitable blend of feed sources, average metallurgical recovery and typical concentrate specifications for marketing purposes."

Considerable progress made on Black Swan Restart since the 2018 Black Swan Study.

• "Work is focused on de-risking the 2018 Black Swan Study by: Increasing high-grade and low-grade mining inventory to support a longer life project. Developing Golden Swan access drive for the resource drilling program. Improved concentrate marketability. Significant pre-production works already completed including underground escapeway refurbishment/replacement, underground infrastructure refurbishment and concentrator safety upgrade. Process water secured under five-year water access agreement. Negotiating accessing grid power which, if secured, will reduce the July 2021 Scoping Study overall plant operating cost estimate by >10%."

Marketing and Project Funding

• "The Company continues to engage with parties who have expressed interest in offtake and funding arrangements."

On November 22, Poseidon Nickel announced: "Exceptional intersection of massive sulphides at Silver Swan." Highlights include:

• "Significant mineralised intersection logged in the Tundra-Mute zone of Silver Swan Channel.
• PTMD018 intersected 13.6m of massive Ni-Cu sulphides visually logged, true width estimated at 9.8m, assays pending.
• Resource extension and infill drilling continues in Silver Swan, 18 holes completed to date in Tundra-Mute."

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

No significant news for the month.

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 November 15, Talon Metals announced: "Talon Metals reports results for the quarter ended September."

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.

On November 16, OZ Minerals announced:

Growth projects strengthen Mineral Resources and Ore Reserves. OZ Minerals' 2021 annual Mineral Resource and Ore Reserve summary.

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.

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

On November 2, Sama Resources announced: "Sama Resources Québec completed a 609 line-km UAV Magnetic-Radiometric Survey at the Lac Brulé Nickel-Copper Project in the province of Québec and launches a 1,444 line-km HELITEM2 Survey." Highlights include:

• "High density of strong magnetic anomalies that are interpreted as the signatures of mafic and ultramafic formations.
• The newly discovered gossan zone is situated in close proximity to these anomalies, emphasizing the favorable environment for base metals mineralization.
• A HELITEM² survey to identify massive sulfide mineralization and covering the entire property is due to start before the end of the year."

North American Nickel [TSXV:NAN]

On October 28, North American Nickel announced:

North American Nickel announces Annual General and Special Meeting and grants incentive stock options.

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

On November 10, Canada Nickel announced:

Canada Nickel demonstrates carbon sequestration potential of tailings from the Crawford Nickel Sulphide Project.

On November 16, Canada Nickel announced:

Canada Nickel completes previously announced property acquisitions. Pursuant to the agreement, Canada Nickel will acquire approximately 1,231 patented properties and single cell mining claims (the "Properties") in Crawford, Lucas, Nesbitt, Aubin, Mahaffy, Kingsmill, Mabee, MacDiarmid, Dargavel and Bradburn Townships. This transaction was previously announced by Canada Nickel in a news release on April 22, 2021. The Properties are all within Noble’s Project 81 land package. The transaction has received conditional approval from the TSX Venture Exchange (the "TSXV"), with completion being subject to final approval of the TSXV.

On November 22, Canada Nickel announced: "Canada Nickel expands Timmins Nickel District – Acquires 13 additional highly prospective nickel properties in Timmins Region." Highlights include:

• "Acquisition of 13 additional target properties consolidates district scale potential.
• Combined target surface footprint of 37.7 square km – 40 times larger than current Crawford Main Zone resource of 0.85 square km.
• Ten target properties have larger footprint than Crawford and nine confirmed to contain the same host mineralization as Crawford.
• Sothman target property has historical higher grade, shallow resource of approximately 190,000 tons of 1.24% nickel (with 300 metres strike length)1; remaining 2.2 km of strike length is largely untested.
• Four target areas have yielded drill intersections of > 0.3% nickel including: Sothman: 2.31% nickel and 0.19% copper over true width of 3.2 metres within 1.58% nickel and 0.12% copper over true width of 8.6 metres from 41 metres. Deloro: 0.38% nickel and 0.22 g/t PGM over core length of 15.5 metres within 0.28% nickel and 0.09 g/t PGM over core length of 299 metres from 241 metres. Midlothian: 0.24% nickel over core length of 345 metres, including 0.30% nickel over 42 metres. Mann Southeast: multiple 3 metre intervals grading 0.31-0.33% nickel within 111 metres of dunite across entire core length."

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

Giga Metals [TSXV:GIGA][FSE: BRR2] (OTCQX:HNCKF)

On October 27, Giga Metals announced:

Options granted. Giga Metals Corporation today announced that, pursuant to its Stock Option Plan, approved by the TSX Venture Exchange, the Company will be granting 1,390,000 stock options to certain Directors, Employees and Consultants, exercisable at $0.45 per share, expiring October 27, 2026. 25% of the options will vest immediately, with an additional 25% vesting on each anniversary after issuance. 100% of the options will vest in the event of a change of control of the Company.

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

On November 15, Ardea Resources announced: "Goongarrie Hub feasibility study update." Highlights include:

• "A uniform Material Types model has been completed for the Goongarrie Hub resource, allocated on the basis of mineralogy for processing by either High Pressure Acid Leach [HPAL] or Atmospheric Leach [AL].
• Metallurgical Drilling completed, 3,204m of HQ3 core drilling in 39 holes.
• Bench-scale metallurgical testing to commence on receipt of drill core multi-element assay data.
• Previous PFS programs by Vale Inco in 2005 to 2009 and Ardea in 2017 to 2019 confirm Goongarrie South stands out as premium HPAL plant feed.
• Goongarrie Hill and Highway were identified from re-evaluation of Vale Inco data as being well suited to Atmospheric Leach. Accordingly, these deposits are the current test-work focus with the aim of providing increased nickel-cobalt production through optimizing full resource utilisation.
• The metallurgical program is designed to assess a Goongarrie Hub flow sheet with two HPAL autoclaves with each rated at 1.5Mtpa, as well as an Atmospheric Leach of some 0.5Mtpa.
• The modelled leach feed grade is currently 1% Ni and 0.07% Co, reflecting the 0.8% Ni cut-off resource grade (ASX release 16 June 2021). The current bench-scale metallurgy also aims to quantify the likely screen beneficiation performance, notably at Goongarrie Hill and Highway."

Centaurus Metals [ASX:CTM]

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 November 5, Centaurus Metals announced:

Centaurus takes key development step at Jaguar with lodgement of updated mining lease application. All key statutory reports now submitted for large-scale nickel sulphide project; approvals process on track.

On November 10, Centaurus Metals announced: "Step-out drilling at Jaguar continues to deliver growth as Tigre discovery confirmed by strong initial assays. JORC Mineral Resource Estimate [MRE] upgrade on track for December" Highlights include:

• "Step-out drill hole JAG-DD-21-190 at the Onça Preta Deposit intersects more high-grade nickel with new assays including: 40.8m at 1.22% Ni from 269.0m, including 14.8m at 2.22% Ni from 295.0m in JAG-DD-21-190. 10.0m at 2.09% Ni from 318.0m, including 6.0m at 2.90% Ni from 318.0m in JAG-DD-21-190......."

Other juniors

Artemis Resources [ASV:ARV], Australian Mines [ASX:AUZ], Blackstone Minerals [ASX:BSX], Cassini Resources [ASX: CZI] (OTC:CSSQF), Class 1 Nickel and Technologies Ltd. [CSE:NICO] (OTCQB:NICLF), Electric Royalties [TSXV:ELEC], FPX Nickel [TSXV:FPX], Grid Metals Corp [TSXV:GRDM], Group Ten Metals Inc. [TSXV:PGE] (OTCQB:PGEZF), Horizonte Minerals Plc [TSXV:HZM] [LON:HZM] (OTCPK:HZMMF), Inomin Mines [TSXV:MINE], Jervois Mining [ASX:JRV][TSXV:JRV] (OTCPK:JRVMF), New Age Metals [TXV:NAM], Nickel Creek Platinum [TSX:NCP] (OTCQX:NCPCF), Pancontinental Resources Corporation [TSXV:PUC], Polymet Mining [TSX:POM], Renforth Resources [CSE:RFR] (OTCQB:RFHRF), Rox Resources [ASX:RXL], S2 Resources (ASX:S2R), 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] (OTCPK:TTSRF), Transition Metals [TSXV:XTM], URU Metals Ltd. [LSE:URU] [GR:NVRA], Wall Bridge Mining [TSX:WM], Widgie Nickel [ASX:WIN] (spin out from Neometals [ASX:NMT], and Zeb Nickel Corp. [TSXV:ZBNI].

Note: Some of the above companies are covered in the Cobalt monthly news.

Conclusion

Nickel spot prices were slightly higher in November, LME inventory was significantly lower.

Highlights for the month were:

• Appian sells Brazilian companies, Atlantic Nickel and Mineração Vale Verde, to Sibanye-Stillwater for US$1 billion.
• New VanEck Green Metals ETF will invest in metals used in ecofriendly energy production.
• EVs to fuel Co-Li demand: China Easpring. The two main technical options LFP batteries and NCM/NCA ternary batteries, will coexist and grow synchronously in the future in view of their respective advantages.
• China's nonferrous group suggests commercial reserves for cobalt, nickel.
• Cobalt and nickel supply tightness will challenge the electrification of transport - IFA panelists.
• Nov. 26 - China’s nickel sulfate market quiet amid weak demand.
• Vale to buy back up to a maximum of 200,000,000 common shares over the next 18 months.
• Sumitomo Metal Mining acquires a 10.1% stake in Kenorland Minerals Ltd. Sumitomo Metal Mining will start recycling cobalt, lithium and other key materials from used EV batteries.
• Sherritt outlines Moa JV expansion strategy.
• IGO to farm in to the Broken Hill Ni-Cu-PGM Project, NSW, Australia.
• Nickel 28 Ramu sales of 8,084 tonnes of contained nickel in Q3 on track to exceed 2020 sales.
• Horizonte Minerals obtains a senior secured project finance facility of up to US$346.2 million to fund the construction and development of the Araguaia Nickel project in Brazil.
• Poseidon Nickel announces maiden Indicated Resource at Golden Swan of 111,600t @ 4.7% Ni for 5,200t contained Ni.
• Canada Nickel completes previously announced property acquisitions. Canada Nickel expands Timmins Nickel District and acquires 13 additional highly prospective nickel properties in Timmins Region.

As usual all comments are welcome.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BHP GROUP [ASX:BHP], VALE SA (VALE), NORILSK NICKEL [LSE:MNOD], ARDEA RESOURCES [ASX:ARL], AMUR MINERALS [LN:AMC], JERVOIS MINING [TSXV:JRV], NEOMETALS [ASX:NMT], WIDGIE NICKEL [ASX:WIN] either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The information in this article is general in nature and should not be relied upon as personal financial advice.

Comments

[BeaBaggage]

$IIDDY has $WNARF's books since September and there is no real news on that merger front w Fortescue's Forrest staying quiet and not adding to his position. Western Areas looks good for BHP which is fighting for other resources in CA etc and already processes some of WSA's nickel..still long $WNARF to see how this plays out..regardless if all walk away or nothing happens, the nickel and prospects seem like a real value, even at the post-buyout prices it was pushed up to. Bea

[BeaBaggage]

well IGO has agreed to a AU$1.1b takeout on WSA AU$3.37/sh or about $2.40US..all cash. Wonder what Forrest will do, he brought his stake up from 5.3% to 6.3% recently and of course has been fighting BHP in CA for Noront.
Will probably will wait a few days to see of Forrest does anything or not. Maybe even outside chance BHP steps up?? B

[EBROWN6241]

I wonder if in the future insurance rates will go up because of a black market selling stolen batteries? Or maybe they will grind the batteries up and sell the materials to a refinery? Like catalytic converters, batteries may be the next hot target for thieves.

[wrc.99]

Thanks for the update!

[Trend Investing]

@wrc.99 - Welcome.

[Slade_01]

CAT should be the real winner, as all that heavy mining takes equipment, and carbon fuels of course.

[L.]

Does the rosy IEA scenario that you included, encapsulated below, take into account the exponential rise of LFP batteries, which use none of them? Especially the signals that Tesla is sending, which are NOT "low-range vehicles in tropical regions..."

"2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 - Increases of 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"

[Trend Investing]

@L. - Not sure re "Does the rosy IEA scenario that you included, encapsulated below." Probably only to some degree, so we will have to wait to see their 2022 forecasts.