Nickel Miners News For The Month Of September 2023

Welcome to the nickel miners news for September.

The past month saw weaker nickel prices as China’s property woes continue.

Nickel price news

As of September 28, the nickel spot price was USD 8.47/lb, significantly lower than USD 9.23/lb last month. LME shows the price at USD 18,650/tonne. Nickel inventory at the London Metals Exchange [LME] was higher the past month at 41,628 tonnes (37,206 tonnes last month).

Nickel spot price 5 year chart – Current price = USD 8.47/lb

Nickel demand v supply chart

Nickel Business Environment: Supply-Demand Balance (as of May 2023) (source)

Trend Investing v IEA demand forecast for EV metals (IEA)

2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 – Increases Of Lithium 13x to 42x, Graphite 8x to 25x, Cobalt 6x to 21x, Nickel 7x to 19x, Manganese 3x to 8x, Rare Earths 3x to 7x, and Copper 2x to 3x (source)

2022 – IEA forecasts 60 new nickel mines needed by 2030

BMI forecasts we need 330+ new EV metal mines from 2022 to 2035 to meet surging demand – 72 new 45,500tpa nickel mines needed by 2035

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

Nickel Market News

On September 4 Fastmarkets reported:

Growth expectations put more attention on European nickel sulfate market. Participants in the nickel market are preparing for a significant ramp-up in demand from regions such as Europe, with demand likely to soar for electric vehicles, which use nickel in their batteries…

On September 6 Stockhead reported:

How are the other battery metal products faring as China’s economy stutters? EV battery demand has chilled in China in August, with nickel, cobalt and graphite feeling the pinch… A quiet demand period for batteries with nickel-cobalt-manganese cathode chemistries, used in long-range EVs like the Tesla Model 3, has seen nickel sulphate converted to nickel metal… Mixed hydroxide precipitate prices meanwhile fell due to rising capacity in the Philippines and Indonesia, dropping 3.38% in August. “Consequently, MHP oversupply has grown as Chinese battery manufacturers favour LFP cathodes for the time being,” BMI said.

On September 7 Fastmarkets reported:

Potential Indonesian mining suspension deepens nickel supply fears. Provincial authorities in Indonesia’s mining hub of North Maluku province proposed a nickel mining suspension in the region’s Central Halmahera Regency amid environmental concerns…

On September 20 Yahoo Finance reported:

Nickel market expected to exceed USD 59.14 Billion by 2028, showing a 7.3% CAGR | Report by Fortune Business Insights™.

On September 20 BMI reported:

China’s Gotion follows CATL playbook with nickel investment. Chinese battery cell producer Gotion High-Tech has agreed to build a nickel processing plant in Indonesia, in the latest sign of battery producers directly sourcing raw materials. The plant with Indonesia’s Anugrah Neo Energy Materials will have a production capacity of 120,000 tonnes of nickel in the form of mixed hydroxide precipitate (MHP)…

Nickel Company News

Producers

Vale SA (NYSE:VALE)

Vale Voisey’s Bay Mine is a key Canadian and global source of nickel. Vale plans a refinery at Bécancour in Québec to supply GM with battery grade nickel sulfate with deliveries targeted to commence in H2 2026.

On August 28, Argus media reported:

Huayou, Vale commit to Indonesian Huali MHP project. Major Chinese battery metals producer Huayou Cobalt has signed a definitive agreement with Vale Indonesia (PTVI) to develop a production plant for mixed hydroxide precipitate (MHP) in Indonesia’s south Sulawesi province. Huali Nickel Indonesia, which is on target to start production in early 2027, will have a nameplate capacity of 60,000 t/yr nickel metal equivalent for nickel and 5,000 t/yr for cobalt with the MHP output, using the high-pressure acid leaching (HPAL) process. The MHP will be used to manufacture electric vehicle (EV) batteries.

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

No significant news for the month.

BHP Group [ASX:BHP] (NYSE:BHP)

BHP’s Nickel West (includes the Mt Keith nickel mine in Australia) has a Measured and Indicated Resource of 4.1Mt contained nickel with a Total Resource contained nickel of 6.3Mt, with an average grade of 0.58% Ni in sulphide ore. Nickel West produced 80 kt of nickel in FY 2020. Stage 1 production of the Kwinana Nickel Refinery is aimed to be 100ktpa nickel sulphate.

On September 6, BHP Group announced:

BHP Prices US Bond Offer. BHP Group Limited (BHP) has conducted a bond offer and successfully priced US$4.75 billion of senior unsecured bonds in the US market…

On September 18, BHP Group announced: “BHP contributes $60 billion to Australian economy in FY23…”

BHP’s Nickel West operations

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

On September 27 Mining Weekly reported:

Glencore to stop funding for New Caledonia nickel business. Diversified major Glencore on Wednesday announced that it would stop providing funding for the operations of Koniambo Nickel (KNS), stating that the New Caledonia business continued to struggle financially and was incurring significant losses. Glencore would continue to provide funding for the operations until February 29, 2024…

Jinchuan Group [HK:2362]

No nickel news for the month.

Sumitomo Metal Mining Co. (OTCPK:SMMYY)

On September 25 Sumitomo Metal Mining Co. announced:

SMM to make strategic investment in battery cathode material technology developer Nano One. Collaboration on producing technology for Electric Vehicle Battery Material… The amount to be invested is 16.9 million Canadian dollars (approximately 1.9 billion JPY *), and Nano One will issue a total of 5,498,355 common shares (the “Shares”), representing approximately 5% of the current issued and outstanding Shares of Nano One on the closing of the investment. This is the first time that a producer of cathode active materials (the “CAM”) has invested in Nano One…

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

No nickel related news for the month.

Eramet [FRA:ERA] (OTCPK:ERMAY)

On September 22, Eramet announced: “Eramet and Suez choose Dunkirk for their electric vehicle battery recycling plant…”

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

No news for the month.

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

On August 31, IGO Limited announced: “FY23 financial results year ended 30 June 2023.” Highlights include:

• “Revenue for the year of $1,024M, generating net profit after tax of $549M and record underlying EBITDA1 of $1,987M…
• Group nickel production of 34,846t and cash costs of $5.63 per payable pound of nickel were within revised guidance following solid operational performance from Nova and Forrestania…
• Cash on balance sheet of $775M at 30 June 2023 with net debt of $415M.
• Final fully franked dividend declared of 44c per share plus a special dividend of 16c in accordance with IGO’s updated Capital Management Policy demonstrating the strength of the Company…”

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 7, Panoramic Resources announced:

Results of Share Purchase Plan… The SPP closed on 5 September 2023, with valid applications for 118,448,910 new fully paid ordinary shares in the Company (“New Shares”) received from Eligible Shareholders under the SPP, raising a total of $5,922,445.50 (before costs)…

On September 18, Panoramic Resources announced: “Broad, high-grade extension of mineralisation at Savannah below 900 Fault.” Highlights include:

• “Follow-up drill hole KUD2245 returns impressive 26.75m grading 1.76% Ni, 1.04% Cu and 0.08% Co from 346.8m below the 900 Fault at Savannah…
• Underground mining of the Savannah orebody has recently recommenced and the expected resource upgrade will significantly de-risk future development of the Savannah orebody below the 900 Fault.”

On September 20, Panoramic Resources announced: “2023 sustainability report…”

On September 20, Panoramic Resources announced: “2023 annual report…”

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

On September 26, Nickel 28 Capital Corp. announced: “Nickel 28 files fiscal Q2 financial statements.”

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

On August 31, Nickel Industries Limited announced:

Half year reports… A record 59,957 tonnes (45,843 tonnes attributable) of nickel metal produced. Completion of commissioning of Oracle Nickel’s RKEF lines and powerplant…

On September 22, Nickel Industries Limited announced:

Completion of placement to United Tractors. Nickel Industries Limited (Nickel Industries or the Company) is pleased to announce it has completed the placement of 19.99% of the Company’s ordinary shares to United Tractor’s (UT) subsidiary PT Danusa Tambang Nusantara (DTN). This follows approval from the Company’s shareholders at an Extraordinary General Meeting held on 8 September 2023 for the issuance of 857,000,000 shares in the Company to DTN at an issue price of A$1.10 and the receipt of the subscription amount of A$942,700,000. Funds from the DTN placement will represent a significant contribution towards the Company’s ~US$1.225M requirement to fund its intended 55% share of Excelsior Nickel-Cobalt Project (ENC), a next generation High Pressure Acid Leach (HPAL) project within the Indonesian Morowali Industrial Park (IMIP) where construction is imminently set commence and for which the Company is scheduled to formalise a Final Investment Decision [FID] for its participation…

Other nickel producers

First Quantum Minerals [TSX:FM] (OTCPK:FQVLF), Franco/Nevada [TSX:FNV], MMG [HK:1208], South32 [ASX:S32], Lundin Mining [TSX:LUN], Nickel Asia Corporation [PSE:NIKL] (OTC:NIKAY), Platinum Group Metals’ [TSX:PTM] (PLG).

Nickel juniors

Horizonte Minerals Plc [TSX:HZM] [AIM:HZM]

Horizonte is developing its 100% owned Araguaia Nickel Project (Araguaia) as Brazil’s next major ferronickel mine.

No significant news for the month.

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

On September 14, Poseidon Nickel announced: “Projects and exploration update.” Highlights include:

Black Swan Restart Project

• “The Final Investment Decision [FID] remains on hold given uncertain global markets, allowing time for additional confirmatory metallurgy testwork to be completed…
• Restart workstreams ongoing, including offtake and project debt financing documentation, design and engineering studies with Western Power and discussions with potential accommodation providers.”

Lake Johnston Exploration

• “Assays received to date have returned elevated Ni and Cu along with highly anomalous platinum group elements…
• Follow up drilling to progress all anomalous geochemistry trends identified along the Western Ultramafic Unit including Maggie Hays West, is expected to commence in October 2023.”

Black Swan Expansion Project – 2.2Mtpa Throughput

• “Prefeasibility study on track to be completed late in 2023…”

Black Swan Exploration

• “Drilling completed on previously announced Target 5 with no significant mineralisation intersected or defined DHEM conductors identified.”

On September 22, Poseidon Nickel announced: “Annual financial report for the year ended 30 June 2023…”

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 12, Talon Metals announced:

Department of Defense and Talon sign agreement to support domestic nickel exploration… US$20.6 million in DOD funding supports exploration to discover more high-grade nickel in Michigan and Minnesota…

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

On September 6, Garibaldi Resources announced: “Garibaldi updates results, 2023 drilling targets BHEM anomaly.” Highlights include:

• “Hole 97b was drilled northwards beneath the E&L Intrusion to 738 meters depth and intercepted E&L type orbicular-textured gabbroic and ultramafic rocks with disseminated to semi-massive sulfides at 469.4 – 477.5m depth. This interval graded 0.14 % Ni, 0.16% Cu, and 0.30 g/t Pd. Concentrations of metal in the sulfide portion of the rock (termed metal tenor) returned 3.3 and 3.4 % Ni, 3.7 and 5.3 % Cu and 3.3 and 5.7 g/t Au+Pt+Pd in mineralized samples with at least 1% S grade. A massive sulphide target with a similar range in metal tenor is the focus of 2023 exploration at E&L…”

St George Mining Ltd. [ASX:SGQ] [GR:SOG]

The Cathedrals, Stricklands and Investigators nickel-copper discoveries (at Mt Alexander) are located on E29/638, which is held in joint venture by Western Areas Limited (25%) and St George (75%). St George is the Manager of the Project with Western Areas retaining a 25% non-contributing interest in the Project (in regard to E29/638 only) until there is a decision to mine.

No nickel news for the month.

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

On September 12, Queensland Pacific Metals announced: “Share Purchase Plan.”

On September 12, Queensland Pacific Metals announced: “Indigenous Land Use Agreement to enable development of QPME’s Northern Hub…”

On September 19, Queensland Pacific Metals announced:

Prescribed project status extension. Two year extension of Prescribed Project status awarded by Queensland Government.

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

On August 29, Premium Nickel Resources Corporation announced: “Premium Nickel Resources Ltd. announces filing of Q2 2023 interim condensed consolidated financial statements.” Highlights include:

• “The Company initiated the mobilization of three drills to carry out its 2023 underground drilling program at Selebi North.
• On June 28, 2023, the Company closed its financings with Cymbria Corporation, EdgePoint Investment Group Inc. and certain other entities managed by it, for aggregate gross proceeds of $33,999,200.
• On June 28, the Company repaid its indebtedness to Pinnacle Island LP in full including accrued interest and restatement fee in an aggregate amount of $7,637,329.
• The Company entered into a binding commitment letter with the Liquidator of BCL Limited, which is subject to customary final documentation, to acquire a 100% interest in two additional deposits (Phikwe South and Southeast Extension) located adjacent to and immediately north of the Selebi North historical workings.
• The Company strengthened its management team and Board of Directors with the addition of key personnel with experience in mining operations, finance and corporate governance.”

On September 13, Premium Nickel Resources Corporation announced:

Premium Nickel Resources Ltd. announces results of recent metallurgical testing of samples from Selebi and Selkirk Mines… The most recent flotation tests showed average nickel and copper grades in the bulk concentrate of 4.9% Ni and 5.6% Cu, with the highest metal recoveries of 70.9% for nickel and 88.9% for Cu. Future metallurgical work will including additional grinding and flotation optimization studies aimed at maximizing metal recovery…

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

On September 6, Canada Nickel Company announced:

Canada Nickel provides corporate update, announces management appointments and US$12 million loan facility with Auramet International, Inc… Mark Selby, CEO of Canada Nickel, said, “I am very proud of everything our team has accomplished in just four years. As we look forward to the completion of the feasibility study later this month, we are making a number of key management appointments in anticipation of advancing the project towards a construction decision by mid-2025. I am very pleased that we have been able to attract outstanding professionals like Des Tranquilla and Chris Chang to join our team on a full-time basis….

On September 7, Canada Nickel Company announced: “Canada Nickel Company publishes first Environmental Social and Governance Report…”

On September 18, Canada Nickel Company announced:

Canada Nickel closes previously announced US$12 million loan facility with Auramet International, Inc…

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

In total, Ardea has 6.1Mt of contained nickel and 386,000t of contained cobalt at their KNP Project near Kalgoorlie in Western Australia. Ardea is also exploring for gold and nickel sulphide on their >5,100 km2 of 100% controlled tenements in the Eastern Goldfields region of Western Australia.

No significant news for the month.

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 September 12, Centaurus Metals Limited announced:

Condensed interim financial report 30 June 2023…The total comprehensive consolidated loss for the half-year was $23,427,881 (2022: $19,435,991). Included in the loss is exploration expenditure of $19,343,650 (2022: $15,912,401). At the end of the half-year the Group had a net cash balance of $12,825,414 (2022: $34,047,722) and net assets of $28,524,158 (2022: $49,328,699)…

On September 27, Centaurus Metals Limited announced:

Approvals process for Jaguar Nickel Project continues to de-risk development pathway. Public Hearings to support grant of the key Preliminary Licence (LP) to be held on 10 & 11 October…

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

On September 19, Alliance Nickel announced: “Letter of Support received from Export Finance Australia for the NiWest Nickel-Cobalt Project.” Highlights include:

• “Export Finance Australia [EFA] provides a conditional and non-binding Letter of Support towards providing financing for the NiWest Nickel-Cobalt Project.
• Subject to EFA Board Approval, the Letter of Support may be converted into a binding agreement following due diligence, sufficient and acceptable lender support and other customary financing terms.
• Discussions advancing with a second Export Credit Agency (ECA) for support in relation to major capital and supply contracts.
• Debt funding process well underway led by Alliance’s adviser, Blackbird Commodity Partners.”

Widgie Nickel [ASX:WIN]

On September 8, Widgie Nickel announced: “High grade Widgie 3 nickel results.” Highlights include:

• “Significant nickel mineralisation intercepts at Widgie 3 confirmed: Thick intercepts of high-grade nickel sulphide and PGE mineralisation confirmed. Mineralisation remains open at depth with increasing grade interpreted down plunge. Drilling results received will facilitate resource update with increased resource confidence.
• High grade results will ultimately feed into the feasibility studies …
• Notable significant nickel intercepts include: 23MERCD073 15.47m @ 3.17% Ni, 0.27% Cu, 0.04% Co, 1.51g/t 3PGE from 301.00m… 23MERCD079 27.70m @ 1.26% Ni, 0.11% Cu, 0.02% Co, 0.50g/t 3PGE from 379.00m…23MERCD080 7.74m @ 2.94% Ni, 0.28% Cu, 0.04% Co, 1.24g/t 3PGE from 369.26m…”

On September 13, Widgie Nickel announced: “Exceptional 132N massive sulphide hit confirmed.” Highlights include:

• “Exceptionally high-grade nickel mineralisation at 132N, previously reported by XRF in 23MERCD112 now confirmed by assay: 23MERCD112 9.14m @ 10.44% Ni, 0.75% Cu, 0.13% Co, 1.93g/t 3PGE from 330.00m Incl 2.61m @ 18.88% Ni, 0.48% Cu, 0.23% Co, 0.65g/t 3PGE from 335.44m.”

On September 15, Widgie Nickel announced: “Financial report for the year ended 30 June 2023…”

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

No news for the month.

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

No news for the month.

Power Nickel [TSXV:PNPN] (CMETF)

On September 6, Power Nickel announced:

Power Nickel hits 25 metres of massive and semi massive sulfides on 300 metre step out in first hole of fall program…

The Metals Company (TMC)

No significant news for the month.

Other juniors

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

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

Nickel miners ETF

Below is the Sprott Nickel Miners ETF. You can view the top holdings here.

Sprott Nickel Miners ETF (NIKL) one year price chart – Price = US$18.62

Conclusion

Nickel spot prices were lower the last month.

Highlights for the month were:

• EV battery demand has chilled in China in August, with nickel, cobalt and graphite feeling the pinch. MHP oversupply has grown as Chinese battery manufacturers favour LFP cathodes for the time being,” BMI said.
• Fortune Business Insights: The nickel market is expected to exceed USD 59.14 Billion by 2028, showing a 7.3% CAGR.
• Gotion High-Tech has agreed to build a nickel processing plant in Indonesia.
• Huayou, Vale commit to Indonesian Huali MHP project.
• Glencore to stop funding for New Caledonia nickel business.
• SMM to make strategic investment in battery cathode material technology developer Nano One.
• Panoramic Resources – Savannah Mine drill hole KUD2245 returns 26.75m grading 1.76% Ni, 1.04% Cu and 0.08% Co from 346.8m.
• Nickel Industries half year report – A record 59,957 tonnes (45,843 tonnes attributable) of nickel metal produced. Raises A$942,700,000 for 19.99% equity investment by PT Danusa Tambang Nusantara.
• Talon Metals awarded US$20.6 million in Department of Defense funding.
• Alliance Nickel – Export Finance Australia [EFA] provides a conditional and non-binding Letter of Support towards providing financing for the NiWest Nickel-Cobalt Project.
• Widgie Nickel drills 9.14m @ 10.44% Ni, 0.75% Cu, 0.13% Co, 1.93g/t.
• Power Nickel hits 25 metres of massive and semi massive sulfides on 300 metre step out in first hole of fall program.

As usual all comments are welcome.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.