Nickel Miners News For The Month Of July 2022

Summary

  • Nickel spot prices were lower last month and LME inventory was lower.
  • Nickel market news - Woodmac forecasts increase in supply will see the global nickel market be in surplus this year and next, which will put downward pressure on prices.
  • Nickel company news - Nornickel H1 2022 total nickel output increased 26% YoY to almost 100 kt. Vale 2Q22 Production Report: Nickel production was 24% lower q/q.
  • BHP signs MOU for nickel supply with Ford to start as early as 2025. Strong drill results and resource growth continue with several juniors.
  • Looking for higher risk/reward options trading ideas? I offer this and much more at my exclusive investing ideas service, Trend Investing. Learn More »
Design concept of coal mining industry.

Evgeny Gromov/iStock via Getty Images

Welcome to the nickel miners news for July. The past month saw nickel prices continue to pull back. The big news emerging in July was the U.S government's moves to support the EV supply chain (includes nickel) as well as new electric vehicle subsidies.

Nickel price news

As of July 29, the nickel spot price was USD 9.66, lower than USD 10.84 last month. LME shows the price at USD 21,450/tonne. Nickel inventory at the London Metals Exchange [LME] was lower the past month at 57,990 tonnes (67,116 tonnes last month).

Nickel spot price chart - Current price = USD 9.66/lb

Nickel spot price chart

Mining.com

Source: Mining.com

Nickel demand vs. supply charts

Norilsk Nickel - Forecasts a mild nickel surplus in 2022

Norilsk Nickel - Forecasts a mild nickel surplus in 2022

Norilsk Nickel

Source: Nornickel announces consolidated production results for 1H 2022 p28

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

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

BloombergNEF

Source: BloombergNEF

UBS forecasts Year battery metals go into deficit (2021 chart)

UBS forecasts Year battery metals go into deficit

UBS

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

2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario

IEA

Source: International Energy Agency 2021 report

Nickel Market News

On July 13 Bloomberg reported:

US says it will back miners to stop China's weaponization of battery metals... “Our concern is that critical minerals could be vulnerable to manipulation, as we’ve seen in other areas, or weaponization,” Granholm said Wednesday in a meeting in Sydney with companies including BHP Group, Rio Tinto Group and Lynas Corp. “We are very serious about establishing strong relationships with Australia, and with you and with your potential customers for offtake”... Producers in nations including Australia can also access support through agencies including the Department of Energy’s loan programs office, Granholm said at the Wednesday meeting... Syrah Resources Ltd., a Melbourne-based graphite producer with facilities in Mozambique and Louisiana, in April won a $107 million commitment from the loan programs office. Rare earths producer Lynas Rare Earths Ltd. in June signed a contract with the U.S. Department of Defense to establish a plant in Texas.

On July 14 Newsweek reported:

Ernst, Manchin Seek to End U.S. Dependence on China for Defense Materials... Republican Senator Joni Ernst of Iowa is seeking to address this issue by teaming up with her Senate Armed Services Committee colleague, Democratic Senator Joe Manchin of West Virginia, to sponsor the Homeland Acceleration of Recovering Deposits and Renewing Onshore Critical Keystones Act, known as the HARD Rock Act... What this act will do is it pushes the Pentagon to refocus on our National Defense Stockpile so that we can secure the materials from partners and allies and further expand our own domestic supply and then end that reliance on our adversaries,"... Some of the minerals appearing on the list that the NDS requires for its stockpile include cobalt, lithium, titanium alloy, aluminum and zinc.

On July 27 Bloomberg reported:

Race to secure battery metals heats up as GM, Ford ink deals. Carmakers are scouring the world to diversify their supplies of raw materials needed to power EV fleets... General Motors Co. announced three deals Tuesday for supplies of raw materials needed to build a million EVs a year. Less than a week ago, Ford Motor Co. revealed a list of suppliers of inputs ranging from Argentine lithium to Indonesian nickel — enough to build 600,000 EVs a year. The world’s shift into electric vehicles means demand growth for lithium, nickel, cobalt and other key ingredients in EV batteries is outpacing supply that’s been hampered by Covid-related logistical woes and a general lack of investment, pushing up prices.

On July 28 CNBC reported:

Schumer-Manchin reconciliation bill has $369 billion to fight climate change — here are the details... For individuals, a $7,500 tax credit to buy new electric vehicles and a $4,000 credit for buying a used one. Both credits would only be available to lower and middle income consumers... The Senate is set to vote on the proposed legislation next week, after which it will go to the Democrat-controlled House of Representatives.

Note: More details here on @SawyerMerritt Twitter including: "This is a big one: Commercial vehicles that weigh OVER 14,000 lbs are eligible for a $40,000 tax credit or 30% of cost of the vehicle (whatever is less). This means the @Tesla Semi will qualify."

On July 28 Investing News reported:

Nickel Price Update: Q2 2022 in Review. After reaching unprecedented levels that prompted the suspension of trading at the London Metal Exchange in the first quarter, nickel prices declined to now trade at around US$22,000 per tonne... with global economic recession fears increasing, nickel prices fell throughout the second quarter, hitting three consecutive monthly losses... “Stainless steel production rates have been falling since March and this will continue at least through July"... “we expect demand from the EV sector to jump by about 30 percent this year, driven by policy targets and further supported by an extension to subsidies in China"... Supply has been increasing in H1 and this will continue in H2, predominantly through the increase in NPI and nickel intermediates production in Indonesia... This increase in supply will see the global nickel market be in surplus this year and next, which will put downward pressure on prices, according to data from Woodmac.

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 July 19, Vale SA announced:

2Q22 Production Report... Nickel production was 24% lower q/q mostly due to scheduled maintenance of our downstream facilities, which was partially offset by strong performance at Onça Puma. Sales were largely in line q/q as inventories built in 1Q22 were sold in 2Q22.

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

On June 5, Norilsk Nickel announced:

Nornickel announces consolidated production results for 1H 2022... “In 1H2022, we increased the output of all key metals compared to the same period last year"... In 1H2022, total nickel output increased 26% year-on-year (y-o-y) to almost 100kt, most of which were produced from own Russian feed (99,8 kt, up 30% y-o-y). The increase in production was attributed to the low base of the first half 2021, when Oktyabrsky and Taimyrsky mines were suspended due to the inflow of underground water as well as the Norilsk Concentrator following an accident.

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 July 19, BHP Group announced:

BHP Operational Review for the year ended 30 June 2022... Full year nickel production was lower than revised guidance due to a smelter outage in the June 2022 quarter.

Note: FY22 nickel production was 76.8kt, 14% lower YoY. June Q22 was 18.8kt, 1% higher YoY.

On July 21, BHP Group announced:

BHP signs MOU for nickel supply with Ford Motor Company... The targeted multi-year nickel supply agreement could start as early as 2025 and may involve additional commodities over time. BHP will explore options to supply Ford Motor Company with nickel from its Nickel West asset in Western Australia, a producer of some of the most sustainable and lowest carbon intensity nickel in the world. In addition, BHP and Ford Motor Company are exploring ways to make battery supply chains more sustainable and efficient, including opportunities for further alignment on best practice and raising ESG performance transparency.

BHP's Nickel West operations

BHP's Nickel West operations

BJP Group

Source: BHP Group/ Nickel West

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

On June 30, Glencore announced: "Glencore publishes payments to governments report 2021."

On July 12, Glencore announced:

Sale of BaseCore Metals LP. Glencore today announces the completion of the sale of a royalty package by BaseCore Metals LP ("BaseCore") to Sandstorm Gold Ltd. (“Sandstorm”) for total consideration of US$525 million.

Jinchuan Group [HK:2362]

No news for the month.

Sumitomo Metal Mining Co. (OTCPK:SMMYY)

On July 22, Sumitomo Metal Mining Co. announced: "New 8-inch direct bonded SiC substrate development line to be established..."

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

On June 28, Anglo American announced: "Anglo American invests in Sanergy organic waste upcycling."

On June 30, Anglo American announced: "Anglo American agrees to combine nuGenTM with First Mode to accelerate Zero Emissions Haulage Solution..."

On July 21, Anglo American announced:

Anglo American plc production report for the second quarter ended 30 June 2022. Nickel production decreased by 3% to 10,300 tonnes, primarily due to expected lower ore grades, as a result of licensing delays that are now resolved. 2022 Guidance: Production guidance for 2022 is unchanged at 40,000-42,000 tonnes, subject to the extent of further Covid-19 related disruptions. 2022 unit cost guidance is unchanged at c.495c/lb.

On July 28, Anglo American announced: "Half year financial report For the six months ended 30 June 2022." Highlights include:

  • "Underlying EBITDA* of $8.7 billion.
  • Profit attributable to equity shareholders of $3.7 billion.
  • Net debt* of $4.9 billion (0.3 x annualised underlying EBITDA): cash generation partially offset by investment in asset resilience and growth.
  • $1.5 billion interim dividend, equal to $1.24 per share, consistent with our 40% payout policy.
  • Quellaveco commissioned on time and on budget: multi-decade new copper operation expected to produce 300,000 copper equivalent tonnes per year on average over first 10 years."

Eramet (OTCPK:ERMAY)

On July 27, Eramet announced: "Eramet: EBITDA at €982m, continued Group deleveraging in first-half 2022." Highlights include:

  • "Strong growth in volumes, continued development plans: +16% of manganese ore produced and transported in Gabon (vs. H1 2021). +31% of exported volumes of nickel ore from New Caledonia. +33% of nickel ore produced in Weda Bay.
  • In the new Eramet scope, excluding operations sold or in the process of being sold1: Group half-year EBITDA more than tripled to €982m. Very strong increase in Free Cash-Flow (FCF) to €429m, including €86m linked to the sale of Sandouville in February.
  • Continued Group debt reduction with leverage of 0.4x.
  • Net income, Group share at €677m.
  • Construction of the lithium plant in Argentina started, in line with the initial schedule.
  • Continued studies as part of the partnership with BASF for the production of battery-grade nickel and cobalt.
  • Signing of the Share Purchase Agreement for Aubert & Duval in June; completion expected by the end of the year, marking the refocusing on Mining and Metals activities
  • 2022 Outlook: Production volume targets confirmed, except SLN... forecast EBITDA revised up to around €1.6bn in 2022."

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

On July 27, Sherritt International announced: "Higher nickel, cobalt and fertilizer prices drive Sherritt’s strong second quarter results." Highlights include:

  • "... Sherritt’s share of finished nickel and cobalt production at the Moa Joint Venture (Moa JV) were 3,704 tonnes and 396 tonnes, respectively. Finished production was lower in the current year period primarily due to timing of the planned annual maintenance shutdown. Last year, the plant maintenance shutdown occurred in Q3...
  • Net direct cash cost (NDCC)(1) at the Moa JV was US$2.19/lb, the lowest since Q3 2018...
  • Received $19.2 million (US$15 million) as its share of Moa JV distributions in Q2 to bring total distributions received in the year to $43.4 million (US$34 million) which exceeds the total amount of distributions received in all of 2021...
  • The Moa JV advanced its expansion strategy aimed at growing annual nickel and cobalt production by 15 to 20% from the combined 34,710 tonnes produced in FY2021 once all projects are completed, and extending the life of mine at Moa beyond 2040. The first phase of this expansion, the slurry preparation plant at Moa, continues under construction and remains on budget and on schedule for completion in early 2024..."

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

On July 1, IGO Limited announced: "IGO acquires 70% interest in Matsa’s Fraser Range Tenement."

On July 27, IGO Limited announced: "IGO delivers on FY22 production and cost guidance." Highlights include:

  • "Group sales revenue of A$278M and underlying EBITDA1 of A$258M for the Quarter, driven by record sales revenue at Nova and increased net profit from TLEA.
  • IGO underlying free cash flow 1 of A$210M driven by A$209M free cash flow generated at Nova and inaugural dividend of A$71M from TLEA in June 2022.
  • Nova nickel production was 3% higher Quarter on quarter (QoQ) and within guidance at 6,509t while cash costs were also within guidance at A$2.24 per payable pound. FY22 nickel production was also within guidance at 26,675t, while copper production was at the lower end of guidance at 11,483t. FY22 cash costs were better than guided at A$1.95 per payable pound.
  • Greenbushes spodumene concentrate production was 25% higher QoQ at 338kt for the Quarter (on a 100% basis) at a COGS (ex-royalties) within IGO’s guidance of A$254/t. FY22 production and costs were also within IGO’s guidance at 1,135kt at a COGS (ex-royalties) of A$238/t.
  • At Kwinana, the first production of battery grade lithium hydroxide (LiOH) during the Quarter was an important milestone, allowing qualification processes to commence with respective offtake customers.
  • Net debt of A$533M with cash on balance sheet of A$367M and A$900M in new debt facilities following the acquisition of Western Areas Limited (Western Areas) during the Quarter for cash consideration of A$1,262M.
  • IGO completed the acquisition of Western Areas via a scheme of arrangement on 20 June 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 July 20, Panoramic Resources announced: "Savannah Commercial Production and FY23 Guidance." Highlights include:

  • "Commercial production achieved at the Savannah operation from 1 April 2022.
  • Annual production from Savannah forecast to increase in FY23 with guidance of: 6,600 – 7,100t of nickel in concentrate. 4,100 – 4,500t of copper in concentrate. 400 – 500t of cobalt in concentrate.
  • C1 cash cost per pound of payable nickel in FY23 of A$7.30 – A$8.30/lb.
  • Savannah operational ramp-up to continue throughout FY23 with nameplate production expected in FY24."

On July 21, Panoramic Resources announced: "Underground Savannah drilling update." Highlights include:

  • "... Mineralisation intercept thicknesses in initial four holes significantly better than predicted at: 10.30m @ 1.29% Ni; 0.97% Cuand0.06% Cofrom128m in KUD1930A...
  • Results indicate a likely increase to the Savannah Mineral Resource in this area of the mine and development of a second mining front in conjunction with Savannah North.
  • Drilling ongoing and to be followed immediately by program to test the Savannah orebody below the 900 Fault."

On July 28, Panoramic Resources announced: "Quarterly activities report for the period ending 30 June 2022." Highlights include:

Savannah Nickel Operations

  • "...Concentrate production of 14,079t containing 1,009t nickel, 547t copper and 71t cobalt.
  • Two shipments of nickel-copper-cobalt concentrate completed during the quarter. Third shipment departed Wyndham Port on 1 April carrying 10,347t of concentrate. Fourth shipment departed on 1 June carrying 10,489t of concentrate..."

Corporate

  • "Cash at the end of the quarter of A$22.0M, up from A$13.7M at the end of the previous quarter..."

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

On June 25, Nickel Industries Limited announced:

Angel Nickel Power Plant commences commissioning. The Directors of Nickel Industries Limited (‘Nickel Industries’ or ‘the Company’) are pleased to announce that the Company’s 80%-owned Angel Nickel Project (‘Angel Nickel’ or ‘the Project’) has commenced commissioning of its 380MW power plant within the Indonesia Weda Bay Industrial Park (‘IWIP’) on Halmahera Island...

On June 28, Nickel Industries Limited announced:

Quarterly activities report for the quarter ended 30 June 2022. Record EBITDA from operations of US$103.2M as Angel Nickel production ramps up and Hengjaya Mine benefits from higher realised ore prices...

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

On June 30, Nickel 28 announced: "Nickel 28 files fiscal Q1 financial statements." Highlights include:

...Highlights from Ramu and the Company during the quarter include:

  • "Receipt of a cash distribution of $3.5 million during the quarter from Ramu’s operating surpluses in the second half of 2021.
  • Strong quarter end cash balance of US$6.4 million, providing ample liquidity for the Company.
  • Production of 8,756 tonnes of contained nickel and 830 tonnes of contained cobalt in mixed hydroxide (MHP) during the first calendar quarter, placing Ramu as the number one producer of MHP globally.
  • Actual cash costs for the first calendar quarter, net of by-product sales, of US$1.48/lb. of contained nickel.
  • Total net and comprehensive loss of $2.8 million ($0.03/share) for the quarter, largely as a result of lower sales and higher input and labour costs."

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 July 25, Mincor Resources announced: "Initial resource of 22,600 nickel tonnes for new LN04a surface sets strong foundation for growth at the Golden Mile. Significant new Mineral Resource confirms the potential for new, high-grade nickel sulphide discoveries that will underpin mine life extensions at the Northern Operations." Highlights include:

  • "Initial Mineral Resource Estimate for the LN04a Surface of 576,000 tonnes @ 3.9% Ni for 22,600 Ni tonnes.
  • The LN04a Surface is located immediately along strike of the Long Mine, close to existing (new) underground infrastructure connecting the Long and Durkin North Operations.
  • The initial LN04a Mineral Resource delivers a substantial (41%) increase in nickel tonnes compared with the existing Long/Durkin North Resource.
  • 71% (~16,000 Ni tonnes) of the LN04a Mineral Resource defined as higher confidence Indicated Resource.
  • Combined Long/Durkin North/LN04a Mineral Resource now exceeds 77,000 Ni tonnes..."

Other nickel producers

First Quantum Minerals [TSX:FM] (OTCPK:FQVLF), Franco-Nevada [TSX:FNV] (FNV), MMG [HK:1208], South32 [ASX:S32] (OTCPK:SOUHY) (OTCPK:SHTLF), Lundin Mining [TSX:LUN] (OTCPK:LUNMF), Nickel Asia Corporation [PSE:NIKL] (NCKAF, 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 July 13, Horizonte Minerals Plc announced:

Completion of awards of key process plant contracts at the Araguaia Nickel Project...To date we have awarded contracts totalling US$293 million (including the US$135 million of process equipment noted above) on budget and on time, which continues the positive momentum building at Araguaia..."

On July 19, Horizonte Minerals Plc announced:

Horizonte announces community development agreement with leading national industrial training provider for the Araguaia Project.

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

On July 4, Poseidon Nickel announced: "More Nickel in updated Black Swan Disseminated Mineral Resource." Highlights include:

  • "Updated Black Swan Disseminated Mineral Resource Estimate reported as follows: 28.9Mt at 0.63% nickel containing 181kt nickel at a 0.4% cut off; including. Measured and Indicated Resources of 10.7 Mt at 0.75% nickel containing 80kt nickel.
  • Measured and Indicated Resources now have 35% more contained nickel compared to the 2014 Resource.
  • Global Resource nickel inventory has increased by ~10kt contained nickel and is at a higher average grade.
  • The updated Black Swan Mineral Resource has significantly improved the confidence in the nickel grade and distribution of the metallurgically important serpentinite and talc-carbonated hosted disseminated mineralisation immediately below the Black Swan open pit.
  • The update Resource underpins the previously outlined “Fill the Mill” Strategy."

On July 12, Poseidon Nickel announced: "Black Swan restart Project update." Highlights include:

  • "Solid progress being made on Feasibility Study.
  • Combined underground high-grade and open pit disseminated Mineral Resources of 29.8Mt @ 0.69% Ni for 206kt nickel contained...
  • Continued strong interest from potential offtake parties and financiers for Black Swan restart.
  • Discussions continuing with Pure Battery Technologies on offtake for their proposed Kalgoorlie refinery.
  • Direct shipped ore option shows sub-optimal economics."

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

On June 30, Amur Minerals Corp. announced: "Audited final results for the year ended 31 December 2021." Highlights include:

  • "Advancing the TEO Project document for the Kun-Manie Project, and submission of the draft report to the expert commission of the State Committee on Reserves (“GKZ”).
  • Sale of Amur’s 14% interest in the Nathan River Resources (“NRR”) Roper Bar iron ore operation in Australia.
  • Continued M&A effort to identify a partner and / or buyer of the Kun-Manie nickel copper sulphide project located in the Russian Far East."

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

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 July 13, Talon Metals announced: "US EV battery supply chain: Talon Metals announces thick high-grade nickel-copper assay results from the Tamarack Nickel Project." Highlights include:

  • "Talon reports assays from eight (8) new drill holes in the CGO East area, located outside of the Tamarack Nickel Project’s main resource area.
  • These new assays demonstrate high nickel and copper grades across a large area in the CGO East area with these holes testing an area approximately 700 meters long (north-south).
  • The assays also demonstrate significant thickness of the mineralized intervals. Notable assay results include: Drill hole 22TK0390 intersected 6.56 meters of nickel-copper mineralization grading 2.95% Ni, 1.01% Cu (3.59% NiEq[1] or 9.56% CuEq[2]) starting at a depth of 133.60 meters..."

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

On July 5, Garibaldi Resources announced: "Garibaldi announces $3.0 million financing..."

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

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

On July 25, OZ Minerals announced: "Second quarter report 2022 for the three months ending 30 June 2022." Highlights include:

  • ".... Growth projects: West Musgrave scheduled for investment decision in H2 2022. Terms Sheet entered into in relation to an option to acquire the Kalkaroo copper project in South Australia.
  • Working capital liquidity strengthened with corporate debt facility increased from $480m to $700m.
  • H1 net revenue of $909 million enabling net cash position of $82 million after reinvesting $210 million in growth projects."

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 July 13, St George Mining Ltd. announced:

Drilling update – Paterson Project. Copper sulphides and highly prospective lithologies with alteration and hydrothermal veining logged in three latest drill holes.

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

No news for the month.

Premium Nickel Resources Corporation [TSXV: "stock ticker to be named soon"] - includes the merged North American Nickel company [TSXV:NAN]

No news for the month.

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

On July 6, Canada Nickel Company announced: "Updated Mineral Resource estimate doubles measured & indicated resources at Canada Nickel’s Crawford Nickel Sulphide Project." Highlights include:

  • "Updated mineral resource estimate more than doubles Measured & Indicated resources to 1.4 billion tonnes at 0.24% nickel plus a further 670 million tonnes of Inferred resources at 0.23% nickel.
  • Crawford now believed to be fifth largest nickel sulphide resource globally comprising 3.5 million tonnes of contained Measured & Indicated nickel."

On July 20, Canada Nickel Company announced: "Canada Nickel identifies new method for accelerated CO2 capture."

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

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

No news for the month.

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

On July 19, Ardea Resources announced: "Quarterly operations report for the quarter ended 30 June 2022." Highlights include:

Kalgoorlie Nickel Project

  • "Multiple Strategic Partner inquiries continue to be received and advanced engagement is accelerating with several parties. All groups want to secure sustainable and ethical nickel-cobalt mineral supply for the lithium-ion battery (LIB) sector.
  • Ardea’s preferred investment model is to retain off-take and link this to favourable Export Credit Agency (ECA) funding terms..."

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 July 20, Centaurus Metals Limited announced: "Jaguar powering towards Q3 resource upgrade as drilling continues to deliver strong results. Visual logs1 from the deepest drill-holes completed to date show semi-massive nickel sulphide mineralisation well below the December 2021 Mineral Resource Estimate (MRE) envelope." Highlights include:

  • "Step-out drilling at Onça Preta (OP) continues to deliver strong, consistent results with new assays including: 31.7m at 1.61% Ni from 369.4m including 5.6m at 4.34% Ni from 374.9m in JAG-DD-22-263 (OP). 22.7m at 1.47% Ni from 383.3m including 6.4m at 2.49% Ni from 386.6m in JAG-DD-22-284 (OP)...
  • The Jaguar December 2021 MRE, comprising 80.6Mt @ 0.91% Ni for 730,700t of contained nickel, is already one of the largest nickel sulphide resources held by an ASX-listed company and the largest outside of the majors.
  • There are currently 15 rigs on site (13 diamond and two RC) drilling double-shift. Resource development drilling is nearing completion with the rigs set to move to Resource growth and discovery drilling..."

On July 27, Centaurus Metals Limited announced: "Jaguar taking shape as a globally significant nickel project as essential project milestones are delivered. In-fill drilling and flotation testwork complete, updated MRE on track, DFS advancing well."

  • "... A Final Investment Decision (FID) remains on track for the end of Q3 2023, after relevant environmental approvals have been secured...
  • Centaurus remains well-funded with $60 million in cash and no debt."

TMC the metals company (TMC)

On July 12, The Metals Company announced:

The Metals Company contracts CSIRO-led Consortium to pioneer ecosystem-based environmental monitoring and management plan for deep-sea nodule collection.

Widgie Nickel [ASX:WIN] (OTCPK:WDGNF)

On July 22, Widgie Nickel announced: "Significant by-product assays received for Gillett North discovery hole." Highlights include:

  • "Significant by-product assays complement Gillett North discovery drillhole MERC225: 12 metres at 3.40% Ni, 0.13% Co, 0.45% Cu, 1.45 g/t 3E1 from 200 metres downhole. 18 metres at 4.69% Ni, 0.18% Co, 0.59% Cu, 1.35 g/t 3E from 246 metres downhole (including 6 metres at 2.57 g/t 3E from 252 metres downhole and 1 metre at 2.98 g/t 3E from 263 metres downhole).
  • These results supplement significant Ni intersections previously reported from MERC225 including: 12 metres at 3.40% Ni from 200 metres downhole. 18 metres at 4.69% Ni from 246 metres downhole...
  • Results demonstrate PGM potential of Mt Edwards.
  • Follow-up drillholes and down hole EM ongoing to evaluate the extent of this discovery.
  • By-product credits have significant incremental value potential at Gillett and Gillett North mineralisation over a strike extent of 1,150 metres and remains open along strike and down dip."

On July 27, Widgie Nickel announced: "June 2022 quarterly report." Highlights include:

  • "... Positive progress on resource extension and infill drilling at Armstrong and Munda deposits, with Widgie on track to update the Mineral Resource estimates in the current quarter."

On July 28, Widgie Nickel reported: "Resource growth potential confirmed at Gillett North."

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), Electra Battery Materials [TSXV:ELBM] (ELBMF) (Electra Battery Materials Park), 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), Horizonte Minerals Plc [TSXV:HZM] [LON:HZM] (OTCPK:HZMMF), 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], Power Nickel [TSXV:PNPN] (OTCQB:CMETF), 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).

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

Conclusion

Nickel spot prices were lower last month and LME inventory was lower.

Highlights for the month were:

  • U.S says it will back miners to stop China's weaponization of battery metals.
  • Ernst, Manchin Seek to End U.S. Dependence on China for Defense Materials.
  • Race to secure battery metals heats up as GM, Ford ink deals.
  • Schumer-Manchin reconciliation bill has $369 billion to fight climate change — here are the details... For individuals, a $7,500 tax credit to buy new electric vehicles and a $4,000 credit for buying a used one.
  • Woodmac forecasts increase in supply will see the global nickel market be in surplus this year and next, which will put downward pressure on prices.
  • Nornickel H1 2022 total nickel output increased 26% YoY to almost100kt.
  • Vale 2Q22 Production Report: Nickel production was 24% lower q/q mostly due to scheduled maintenance of our downstream facilities.
  • BHP signs MOU for nickel supply with Ford Motor Company to start as early as 2025.
  • Eramet reports H1 2022 Net income, Group share at €677m.
  • Higher nickel, cobalt and fertilizer prices drive Sherritt’s strong second quarter results.
  • IGO Limited: FY22 nickel production was within guidance at 26,675t.
  • Mincor Resources initial Mineral Resource Estimate for the LN04a Surface of 576,000 tonnes @ 3.9% Ni for 22,600 Ni tonnes.
  • Poseidon Nickel updated Black Swan Mineral Resource Estimate reported as follows: 28.9Mt at 0.63% nickel containing 181kt nickel.
  • Talon Metals drill hole 22TK0390 intersected 6.56 meters grading 2.95% Ni, 1.01% Cu starting at a depth of 133.60 meters.
  • Canada Nickel Company: Updated Mineral Resource estimate doubles measured & indicated resources at Canada Nickel’s Crawford Nickel Sulphide Project.
  • Centaurus Metals Limited Jaguar Nickel Sulphide Project in Brazil is taking shape as a globally significant nickel project with a MRE comprising 80.6Mt @ 0.91% Ni for 730,700t of contained nickel.
  • Widgie Nickel Gillett North discovery drillhole MERC225: 12 metres at 3.40% Ni, 0.13% Co, 0.45% Cu, 1.45 g/t 3E1 from 200 metres downhole.

As usual all comments are welcome.

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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], JERVOIS GLOBAL [TSXV:JRV], ELECTRA BATTERY MATERIALS [TSXV:ELBM], 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.

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