Nickel: the long and the short

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Nickel: the long and the short

posted on May 09, 2013 11:44AM

By BMO · May 8, 2013 · 1:21 pm · Leave a Comment

BMO Research continues to recommend a cautious approach to nickel given a near-term oversupplied market and rising inventory levels. However, two key supply-side factors – Indonesian exports and HPAL (high pressure acid leaching) projects – could provide meaningful upside for nickel, with BMO Research running commodity price sensitivities on the two scenarios. If all raw nickel ore exports cease from Indonesia in 2014, BMO Research estimates nickel price upside to US$20/lb by 2016. If current HPAL projects are entirely unsuccessful, BMO Research estimates nickel price upside to US$14.50/lb long term. BMO Research has updated its base case long-term nickel price to US$9.00/lb from US$8.50/lb on higher projected energy costs and a balanced market by 2017-2018.