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A look at the nickel sector and the leading companies as we head into 2023

Nickel prices have had a very good year in 2022, up 43% YTD to US$28,199/t at the time of writing. This has been mostly due to a tight market with demand remaining strong and limited new supply.

2023 is forecast to be another tight year for the nickel market, although some analysts are concerned with potential new supply from Indonesia. Sumitomo sees a tight nickel supply/demand balance for the battery sector with some potential oversupply of nickel pig iron (NPI) in 2023. Nickel pig iron is a low grade ferronickel commonly used in China as a cheaper alternative to pure nickel for the production of stainless steel.

Sumitomo Metal Mining forecasts (as of Sept. 2022) small nickel deficits for 2022 and 2023

Source: Sumitomo Metal Mining (see page 11)

A huge demand wave ahead for nickel this decade and next

Looking out further, in 2021 the IEA forecast that nickel demand is set to increase by 7x to 19x from 2020 to 2040. This is driven by conventional demand from stainless steel plus surging demand from batteries, mostly to supply the electric vehicle boom. Not all batteries will use nickel; however nickel, manganese, cobalt (NMC) cathode batteries are set to remain as a dominant battery chemistry in Western markets due to their superb energy density, combined with a good long cycle life. In 2022, the IEA forecast that 60 new nickel mines would be needed by 2030.

Jessica Farrell, BHP’s Asset President of Nickel West, recently was quoted as stating: “We anticipate demand for nickel in the next 30 years will be 200% to 300% of the demand in the previous 30 years”.

The leading nickel companies

Vale S.A. (NYSE: VALE) is consistently in the top 3 global leading producers of nickel. In 2020 they ranked second producing 215,000t. In 2021, Vale was the world’s largest iron ore and nickel producer with iron ore and pellets making up 81% of revenue in Q2, 2022, nickel making up 9%, and copper 3%. Vale has been working on expanding production capacity of both iron ore and nickel. Vale’s key nickel assets are well located in Voisey’s Bay in Canada. Vale has nickel supply agreements to supply nickel to Tesla (NASDAQ: TSLA), Ford Motor Co. (NYSE: F), Northvolt, and more recently General Motors (NYSE: GM). Vale’s stock currently trades on a 2023 PE of only 5.97 and an indicative 2023 dividend yield of 6.6%.

Norilsk Nickel was the leading global nickel producer in 2020 with 236,000t. Being a Russian company 2022 has not been kind for investors in Nornickel with the stock price plunging and stock trading being suspended from all Western stock exchanges. Nornickel recently stated: “MMC Norilsk Nickel shares are listed on the Moscow and on the Saint-Petersburg Stock Exchanges, ADRs are accepted for trading on the Saint-Petersburg Stock Exchange.”

Glencore PLC (LSE: GLEN | OTC: GLCNF) ranked the number 3 leading global nickel producer in 2020 with 110,000t of production. Glencore’s 2022 production for the first 9 months of the year was 81,600t, 15% up on the same period in 2021.

BHP Group Limited (NYSE: BHP) is ranked 4th in 2020 with 80,000t of nickel production. BHP’s Nickel West mine has been ramping up operations in recent times with ore sent to BHP’s Kwinana Nickel Refinery which can produce 100,000tpa of nickel sulphate. BHP is looking to grow their nickel business and recently announced a takeover offer of OZ Minerals Limited (ASX: OZL) (who themselves have an option deal to acquire Havilah Resources’ Kalkaroo Project in SA that contains copper, gold and cobalt).

BHP’s Nickel West operations in Western Australia

Source: BHP website

Others – Other key global nickel producers include Jinchuan Group (HK: 2362), Sumitomo Metal Mining Co. (TYO: 5713 | OTC: SMMYY), Anglo American (LSE: AAL | OTC: AAUKF), Eramet (OTC: ERMAY), Sherritt International (TSX: S | OTC: SHERF), IGO Limited (ASX: IGO | OTC: IIDDY), Panoramic Resources (ASX: PAN | OTC: PANRF), Nickel Industries Limited (ASX: NIC | OTC: NICMF), Nickel 28 Capital Corp. (TSXV: NKL), Mincor Resources (ASX: MCR | OTC: MCRZF), and a few more.

Closing remarks

2022 was a great year for the nickel sector. 2023 looks like being a bit tougher as a global slowdown looms and as new Indonesia supply comes online; however, looking out this decade it looks hard to see where the 60 new nickel mines needed will come from.

There are several exciting nickel juniors working to fill the impending nickel supply gap this decade. Some are ii8 members here at InvestorIntel, such as Power Nickel (TSXV: PNPN), so feel free to read up on them over the upcoming Christmas break.




Terry Lynch of Power Nickel talks about its new NI 43-101 mineral resource estimate at Nisk

In this InvestorIntel interview with host Tracy Weslosky, Power Nickel Inc.‘s (TSXV: PNPN | OTCQB: CMETF) CEO Terry Lynch talks about the just released significant inaugural NI 43-101 compliant mineral resource estimate on their Nisk nickel sulphide project near James Bay, Québec.

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here), Terry tells Tracy that “the one thing I would draw everyone’s attention to is that we use very conservative numbers.” Even so, he says the resource estimate reports more than 2.5 million Indicated Tonnes at 1.20 %NiEq and 1.4 million Inferred Tonnes at 1.29 %NiEq. In addition, Terry adds, “you can look at the isometric views and you can see very plainly where we can go with infill drilling to add a bunch of tons fairly easily and fairly low risk, so that’s exciting for us.”

Terry also talks about the advantage of Nisk’s location, including other producing mines nearby, road access, being “across the road from a Hydro Quebec substation” for power, and good relations with local groups. “We’re super close to infrastructure,” he tells Tracy. “We believe we’re the greenest nickel mine in history because of the access to the Quebec Hydro grid.”

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About Power Nickel Inc.

Power Nickel is a Canadian junior exploration company focusing on high-potential copper, gold, and battery metal prospects in Canada and Chile.

On February 1, 2021, Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80% of the Nisk project from Critical Elements Lithium Corp. (CRE:TSXV)

The NISK property comprises a large land position (20 kilometers of strike length) with numerous high-grade intercepts. Power Nickel, formerly Chilean Metals is focused on confirming and expanding its current high-grade nickel-copper PGE mineralization historical resource by preparing a new Mineral Resource Estimate in accordance with NI 43-101, identifying additional high-grade mineralization, and developing a process to potentially produce nickel sulfates responsibly for batteries to be used in the electric vehicles industry.

Power Nickel (then called Chilean Metals) announced on June 8 th , 2021 that an agreement has been made to complete the 100% acquisition of its Golden Ivan project in the heart of the Golden Triangle. The Golden Triangle has reported mineral resources (past production and current resources) in a total of 67 million ounces of gold, 569 million ounces of silver, and 27 billion pounds of copper. This property hosts two known mineral showings (gold ore and magee), and a portion of the past-producing Silverado mine, which was reportedly exploited between 1921 and 1939. These mineral showings are described to be Polymetallic veins that contain quantities of silver, lead, zinc, plus/minus gold, and plus/minus copper.

Power Nickel is the 100-per-cent owner of five properties comprising over 50,000 acres strategically located in the prolific iron-oxide-copper-gold belt of northern Chile. It also owns a 3-per-cent NSR royalty interest on any future production from the Copaquire copper-molybdenum deposit, recently sold to a subsidiary of Teck resources Inc. Under the terms of the sale agreement, Teck has the right to acquire one-third of the 3-per-cent NSR for $3-million at any time. The Copaquire property borders Teck’s producing Quebrada Blanca copper mine in Chile’s first region.

To learn more about Power Nickel Inc., click here

Disclaimer:  Power Nickel Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].




Terry Lynch of Power Nickel talks about its soon to be released resource update and plans for 2022

In this InvestorIntel interview with host Tracy Weslosky, Power Nickel Inc.‘s (TSXV: PNPN | OTCQB: CMETF) CEO Terry Lynch talks about upcoming advances of its polymetallic NISK project.

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here), Terry discusses exploration plans and an upcoming NI 43-101 resource update of the historic resource on its flagship NISK project in Quebec, a high-grade nickel sulphide deposit which contains nickel, copper, cobalt, and platinum group elements. Terry also talks about the possibility of Power Nickel spinning out its Golden Ivan gold-copper project in British Columbia’s Golden Triangle to focus on the more advanced development story of NISK, which has attracted investment in Power Nickel by two of the top-ranked hedge funds.

Terry explains that Power Nickel is positioned to be one of the greenest sources of class-1 nickel in the world, and that its resource report expected in June will put Power Nickel on the industry’s radar. “We’re in the right market in the right jurisdiction at the right time,” he tells Tracy.

To access the full InvestorIntel interview, click here

Don’t miss other InvestorIntel interviews. Subscribe to the InvestorIntel YouTube channel by clicking here.

About Power Nickel Inc.

Power Nickel is a Canadian junior exploration company focusing on high-potential copper, gold, and battery metal prospects in Canada and Chile.

On February 1, 2021, Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80% of the Nisk project from Critical Elements Lithium Corp. (CRE:TSXV)

The NISK property comprises a large land position (20 kilometers of strike length) with numerous high-grade intercepts. Power Nickel, formerly Chilean Metals is focused on confirming and expanding its current high-grade nickel-copper PGE mineralization historical resource by preparing a new Mineral Resource Estimate in accordance with NI 43-101, identifying additional high-grade mineralization, and developing a process to potentially produce nickel sulphates responsibly for batteries to be used in the electric vehicles industry.

Power Nickel (then called Chilean Metals) announced on June 8th, 2021 that an agreement has been made to complete the 100% acquisition of its Golden Ivan project in the heart of the Golden Triangle. The Golden Triangle has reported mineral resources (past production and current resources) in a total of 67 million ounces of gold, 569 million ounces of silver, and 27 billion pounds of copper. This property hosts two known mineral showings (gold ore and magee), and a portion of the past-producing Silverado mine, which was reportedly exploited between 1921 and 1939. These mineral showings are described to be Polymetallic veins that contain quantities of silver, lead, zinc, plus/minus gold, and plus/minus copper.

Power Nickel is the 100-per-cent owner of five properties comprising over 50,000 acres strategically located in the prolific iron-oxide-copper-gold belt of northern Chile. It also owns a 3-per-cent NSR royalty interest on any future production from the Copaquire copper-molybdenum deposit, recently sold to a subsidiary of Teck resources Inc. Under the terms of the sale agreement, Teck has the right to acquire one-third of the 3-per-cent NSR for $3-million at any time. The Copaquire property borders Teck’s producing Quebrada Blanca copper mine in Chile’s first region.

To know more about Power Nickel Inc., click here

Disclaimer: Power Nickel Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].