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)
Message: HIDE AND GO SEEK NICKEL.....THE "N" WORD.....& TRUTH OR SCARE
It is becoming apparent, or at least interesting, that nickel inventories are dropping, specifically that of nickel sulphide, and yet the price of nickel remains stagnant. Hovering around the $ 5 - 6 US / lb mark. Eventhough, on a daily basis nickel inventories at the LME decrease by at least several hundred, to several thousand tons. Much of which is believed to have been moved in and out of shadow warehouses to give the global markets, and industries, a sense that a deficit is not in the midst. But this is to fool everyone. For it is also believed that if mines do not come online, and exploration does not continue, then nickel could drop into deficit within 18 months......or so they say.
Onto another topic of interest.....Why is that everyone else who is mining nickel...from majors to juniors...is mentioned in the mining media circles, and yet our company has become the "N" word ("N" for Noront) that no one dares to utter. Is our company being kept a secret for some reason? Are magazine and newspaper moguls telling their staff to talk about every other nickel mining company, except Noront? I mean, even here, our author for Seeking Alpha mentions all sorts of juniors, except Noront. Odd. Especially, when Noront has much more to offer as a nickel mine. You would have thought the author, even if not a professional writer, would have knowledge about them, and included them in his junior list.
Finally, why is our CEO Alan Coutts so interested in telling the truth.....I appreciate the fact that he is being frank with everyone. But doesn't this also scare retail investors from investing in Noront. Obviously RCF is more than happy to accumulate more cheap stock, and so do many other institutional investors. But do you get the feeling retail is being slowly erradicated with these ever increasing timelines being toted by Coutts. I keep wondering if this is a case of Truth....or Scare. Because eitherway its not going to help our stock price any...Unless this is intentional...Hmmmm. But why?
Happy Canada Day Everyone
TM.
HTTPS://SEEKINGALPHA.COM/ARTICLE/4272748-NICKEL-MONTHLY-NEWS-MONTH-JUNE-2019
Nickel Monthly News For The Month Of June 2019
Summary
- Nickel spot prices were flat in June, and the LME inventory was also flat and remains at a 7-year low.
- Nickel market news - Confusing signals cloud London nickel market. Falling inventory yet prices remain low? Off-market storage. Resurgent mine production in Indonesia.
- Nickel company news - RNC Minerals updated FS for Dumont, Poseidon Nickel reports outstanding high grade nickel drill results.
- This idea was discussed in more depth with members of my private investing community, Trend Investing. Get started today »
Welcome to the nickel miners news for June. The past month saw nickel prices flat and LME inventories flat remaining at 7 year lows. A quieter month for nickel miner news, but still some excellent results.
Nickel price news
As of June 26, the nickel spot price was US$5.62/lb, about the same from US$5.51 last month.
Nickel spot prices - 5-year chart - USD 5.62/lb
Source: InfoMine.com
London Metals Exchange [LME] nickel 5-year inventory
The chart below shows LME nickel inventory flat in June remaining near a 7-year low.
Source: InfoMine.com
A May 2109 article I came across this month from Mining.com reported:
Confusing signals cloud London nickel market - opinion. The London Metal Exchange (LME) nickel market was last week gripped by the most acute tightness in a decade. Falling inventory and tighter spreads are normally strong bull signals in a commodity market. And in nickel’s case they seem to tally nicely with the International Nickel Study Group’s [INSG] forecast that supply will fall short of usage for the fourth successive year in 2019. However, conspicuous by its absence is any strength in the outright nickel price, which has fallen from a March high of $13,765 per tonne to a current $11,910. Nickel has been caught up in the broader base metals negativity caused by slowing global manufacturing activity and U.S.-China trade tensions. Chinese players also appear to have stopped buying nickel as a derivative of the rampant iron ore price. Some of the metal leaving LME warehouses may well have gone to meet end-user demand but there is a robust analysts’ consensus that some of it has simply been moved to statistically opaque off-market storage..... Resurgent mine production in Indonesia, up 71% last year, is driving strong nickel pig iron (NPI) production. This collective sense of coming weakness in China’s giant stainless steel sector, the single biggest end-user of nickel, is also why the LME nickel price has been drifting.
Nickel demand v supply
The chart below shows nickel is forecast to be in deficit after ~2020-2022 (or at least require new supply to come online).
Source: Wood Mackenzie
Note: Some others such as BMI have been forecasting a nickel surplus by 2020 due to increased Indonesian production and reduced Asian demand.
As a reminder, the November 2017 McKinsey report stated: "If annual electric vehicle [EV] production reaches 31 million vehicles by 2025 as expected then demand for high-purity class 1 nickel is likely to increase significantly from 33 Kt in 2017 to 570 Kt in 2025." That is a 17-fold increase in just 8 years, albeit only on Class 1 nickel.
Nickel Market News
On May 30, The Financial Times reported:
India to acquire reserves of strategic minerals to power the country's move into EVs. India's move to acquire reserves of strategic minerals like lithium and cobalt to power the country's move into electric vehicles is all set to become a reality with three state-owned metal and mining companies due to ink a joint venture agreement early next month. HCL chairman Santosh Sharma said adding “we are part of a government initiative to build up strategic reserves of these minerals.” The first acquisition is likely to be finalised within the next six months. Official teams have already visited mines in countries like Peru, Bolivia and Chile, which are rich in such strategic minerals. The Union mines ministry has already directed the three state-owned companies to aggressively look for reserves of lithium and cobalt, which are used to manufacture batteries for electric vehicles, smartphones and laptops, in addition to other precious minerals like tungsten, nickel and rare earths.
On June 6, Fastmarkets reported:
EV experts tell nickel market to invest now or regret later. The EV panel experts also believe producers are on the verge of providing batteries with better energy density and vehicles with a 1,000km range, making them more desirable for consumers. Battery production must increase to meet this demand and panelists indicated that nickel is the EV battery metal of choice. They forecast this will likely remain the case for the next five to seven years at least, leading to an increase in nickel demand, along with the price.
On June 11, Investing News reported (video with Ken Hoffman, basic materials expert at McKinsey):
Nickel and cobalt are going in different directions..... Major metal producers don’t see any incentive price to look for new nickel mines.
Nickel Company News
Producers
Vale SA (NYSE:VALE)
Vale plans a US$1.7B Voisey's Bay expansion plan to boost their nickel production.
On June 17, Vale SA announced:
Vale informs on Onça Puma. Vale S.A. (“Vale”) informs that today it suspended its nickel processing activities at the Onça Puma plant, in the State of Pará. It is important to note that the mining activities in the Onça Puma mines have been halted since September 2017 by means of a prior judicial decision....
Norilsk Nickel [LSX: MNOD] (OTCPK:NILSY)
On June 10, Norilsk Nickel announced:
Shareholders of MMC Norilsk Nickel approved the final dividend for the FY 2018. Shareholders of MMC Norilsk Nickel, the world’s largest refined nickel and palladium producer, held the Annual General Meeting [AGM] on June 10, 2019. The AGM approved the final dividend for the financial year 2018 in the amount of RUB 792.52 per ordinary share (approximately USD 12.25 at the RUB/USD exchange rate of the Russian Central Bank as of April 26, 2019....Taking into account the interim dividend paid for six months of 2018 (for a total amount of approximately USD 1.8 bn) the total dividend distribution for the full year 2018 amounts to USD 3.7 bn.
On June 18, Norilsk Nickel announced: "Nornickel has joined the global blockchain initiative Hyperledger."
Investors can read my article "An Update On Norilsk Nickel."
BHP Group [ASX:BHP] (NYSE:BHP)
In 2017, BHP announced a US$43.3m investment in its Nickel West project to enable conversion to nickel sulphate.
No nickel related news for the month.
Jinchuan Group [HK:2362]
No nickel related news for the month.
Glencore (OTCPK:GLCNF) [LSX:GLEN]
No nickel related news.
Sumitomo Metal Mining Co. (OTCPK:SMMYY)
On June 25 Sumitomo Metal Mining Co. announced:
Notice Regarding the approval of the proposal “Renewal of Countermeasures to large-scale acquisitions of Sumitomo Metal Mining Co., Ltd. shares (Takeover Defense Measures)” at the 94th ordinary general meeting of shareholders.
Anglo American [LSX:AAL] (OTCQX:AAUKF)
On June 7, Anglo American announced: "Anglo American details tailings storage facilities."
Eramet (OTCPK:ERMAY)
On June 17, Eramet announced: "Eramet signs a framework agreement with Delair to accelerate its digital transformation with smart, connected mines."
Sherritt International (OTCPK:SHERF)[TSX:S]
On June 13, Sherritt International announced:
Sherritt Announces ratification of payment plan by Cuban partners. Sherritt International Corporation (“Sherritt” or the “Corporation”) today announced that its Cuban partners have formally ratified an overdue receivables agreement (the “Agreement”) for repayment of amounts owed to Sherritt from Energas S.A. (“Energas”) of US$150 million, and have made the first monthly payment of US$2.6 million to Sherritt in Canada in accordance with the terms of this Agreement. The overdue amounts from Energas relate to Sherritt’s power business in Cuba, and include a loan provided by Sherritt to fund the expansion of power production facilities at Boca de Jaruco.
On June 26, Sherritt International announced:
Sherritt confirms Mineral reserves and outlines increased mineral resources at Moa JV. “Backed by updated technical and economic data, the 2019 Technical Report confirms that Moa is a low-cost, long-life asset with the potential to significantly increase the mine life,” said David Pathe.
Note: There was minimal change in the reserves and resources from 2018 to 2019.
Independence Group [ASX:IGO] (OTC:IIDDY)
On May 30, Independence Group announced: "Lake Mackay JV update: High grade Cobalt intersected at Grimlock." Highlights include:
- "Highlights from first three drill holes completed at Grimlock Co-Ni Prospect include: 4m @ 0.6% Co and 0.49% Ni from 2m. 1m @ 1.86% Co and 0.84% Ni from 8mand 4m @ 0.22%Co and 0.64% Ni from 20m.
- Managing JV partner IGO is currently undertaking a 9,600m RC drilling campaign to test targets highly prospective for Au, Cu, Pb, Zn, Co, Ni and Mn mineralisation."
On June 17, Independence Group announced:
Fraser Range Project–Earn in and joint venture agreement. Classic Minerals Ltd (or the “Company”) is pleased to advise that it has signed an Earn in and Joint Venture Agreement (“Agreement’) over the Company’s Fraser Range tenements, with Independence Newsearch Pty Ltd., a 100% owned subsidiary of Independence Group NL (together “Independence”).
On June 20, Independence Group announced:
Independence group completes farm-in at Plumridge nickel project. Arrow Minerals Limited (Arrow or the Company) is pleased to announce that its joint venture partner in the Plumridge Nickel Project (Project), Independence Group NL, has completed the expenditure requirement to increase its interest in the Project to 90%. Under the farm-in agreement, IGO had the right to increase its interest in the Project from 51% to 90% through the expenditure of $5 million within four years from 31 January 2018.
Western Areas Ltd. [ASX:WSA](OTCPK:WNARF)
On June 13, Western Areas Ltd. announced: "Assays confirm latest thick high-grade nickel-copper sulphides at Mt Alexander." Highlights include:
- Laboratory assays for MARC118 confirm thick intersections of high-grade nickel-copper-cobalt-PGE mineralisation: 10m @ 2.47% Ni, 1.06% Cu, 0.07% Co and 2.52g/t PGEs from 142m including 3m @ 3.85% Ni, 2.12% Cu, 0.11% Co and 4.22g/t PGEs from 145m and 2m @ 5.04% Ni, 1.47% Cu, 0.16% Co and 2.12g/t PGEs from 150m.
- Drill results establish further continuity of high-grade mineralisation at the Investigators Prospect, both in the northerly down-dip direction and along the east-west trend of the Cathedrals Belt.
- Two conductive anomalies identified in the northern section of the Investigators Prospect are favourably located for potential additional extensions of known high-grade nickel-copper sulphides."
Panoramic Resources [ASX:PAN] (OTCPK:PANRF)
Panoramic's Savannah mine and mill have a forecast life of mine average annual production rate of 10,800 t of nickel, 6,100 t of copper and 800 t of cobalt metal contained in concentrate.
No news for the month.
RNC Minerals [TSX:RNX] (OTCQX:RNKLF)
On May 30, RNC Minerals announced: "RNC Minerals announces positive results of Dumont nickel-cobalt project updated feasibility study." Highlights include:
- "Large scale, low cost, long-life project. Initial nickel production in concentrate of 33ktpa ramping up to 50ktpa in Phase II expansion – production of approximately 1.2 million tonnes (2.6 billion pounds) of nickel in concentrate, over a 30-year life with an initial capital expenditure of $1.0 billion. Phase I C1 cash costs2 of $2.98/lb ($6,570/t). Life-of-mine C1 cash costs2 of $3.22/lb ($7,100/t Ni) and AISC of $3.80/lb ($8,380/t) of payable nickel (low 2nd quartile of cash cost curve).
- Significant earnings and free cash flow generation support strong project economics. $920 M after-tax NPV8% and 15.4% after-tax internal rate of return ("IRR"). Estimated annual EBITDA ramping up from $303 million in Phase I to $425 million in Phase II and averaging of $340 million over the life of project. Free cash flow averages $ 201 million annually over the 30-year project life.
- Top tier mining asset in excellent jurisdiction. 2nd largest nickel reserve in the world of 2.8 million tonnes (6.1 billion lbs) contained nickel and 9th largest cobalt reserve with 110 thousand tonnes (243 million lbs) contained cobalt. Once in production, a top 5 nickel sulphide operation globally, a top 3 Canadian base metal asset, and one of largest battery metal development projects globally. Fully permitted, construction ready project located in Abitibi region in Quebec – one of world's leading mining jurisdictions. Impacts and Benefits Agreement successfully negotiated with local First Nation."
Note RNC Minerals had several great gold news in June that you can read here, here and here.
Axiom Mining [ASX:AVQ] (OTC:AXNNF)
On May 31, Axiom Mining announced:
Monthly activities report for the period ended 30 April 2019. During the month ended 30 April 2019, approximately 10,000 WMT of nickel laterite ore has been mined, extracted and stockpiled. Extraction rates are expected to increase with the cessation of the wet season and arrival of additional mine equipment.
Other nickel producers
Franco/Nevada [TSX:FNV], MMG [HK:1208], South32 [ASX:S32], Lundin Mining [TSX:LUN], Nickel Asia Corporation [PSE:NIKL] (OTC:NIKAY).
Note: First Quantum Minerals halted their nickel production from their Ravensthorpe mine in 2017 due to low nickel prices.
Nickel juniors
Poseidon Nickel [ASX:POS] (OTC:PSDNF)
On June 12, Poseidon Nickel announced: "Continuing high grade nickel intersections at Silver Swan." Highlights include:
- "Silver Swan drilling continues to expand high grade nickel sulphide mineralisation.
- Hole PBSD006A has encountered high grade nickel ore outside the Tundra-Mute Resource envelope for Silver Swan.
- Current and recent drilling results now provides the basis for Silver Swan Resource revision in August 2019.
- Latest results demonstrate high grade nickel intercepts: -PBSD004 13.6m @ 5.61% Ni (true width 4.7m) including. 3.5m @ 14.01% Ni (true width 1.2m)-PBSD006A 15.1m @8.64% Ni (true width 3.5m) including. 5.99m @ 12.85% Ni (true width 1.4m)-PBSD009 37.9m @3.4% Ni (true width) including. 6.92m @ 11.66% Ni (true width 2.4m). 19.85m @ 5.6%ni (true width 6.9m).
- Completion of this 3,000m Silver Swan drilling program in June and remaining assays early in July 2019."
Garibaldi Resources [TSXV:GGI] [GR:RQM] [LN:OUX6] (OTC:GGIFF)
On June 13, Garibaldi Resources announced: "Garibaldi kicks off 2019 drilling at nickel mountain."
Cassini Resources [ASX:CZI]
On June 7, Cassini Resources announced: "Completion of the Yarawindah Brook acquisition." Highlights include:
- "Cassini completes acquisition of 80% of Yarawindah Brook Project.
- Executed Joint Venture agreement."
On June 18, Cassini Resources announced: "Outstanding drill results at one Tree Hill Prospect."
- "Multiple high-grade Cu intersections in drill hole CZD0099 representing the best results at the One Tree Hill prospect to date.
- Mineralisation is open in all directions.
- Near-surface mineralisation provides potential for shallow resources.
- 9m @ 2.56% Cu, 0.37% Ni, 0.06% Co & 1.32g/t PGE from 344m within a broader disseminated zone of 40m @ 1.16% Cu from 343m (Zone B)."
North American Nickel [TSXV:NAN]
No news for the month.
Amur Minerals Corp. [LSE:AMC] [GR:A7L] (OTCPK:AMMCF)
On June 25, Amur Mineral Corp. announced:
Audited final results for the year ended 31 December 2018. The 2017 field season resulted in an impressive 50% expansion of the Kun-Manie resource base to just over 1.5 million tonnes of nickel equivalent averaging 1.02% resulting in its being ranked among the five largest undeveloped nickel sulphide projects in the world.
Clean TeQ [ASX:CLQ] [TSX:CLQ] (OTCQX:CTEQF)
Clean TeQ has 132kt contained cobalt at their Sunrise project.
On June 4, Clean TeQ announced:
Clean TeQ commences a partnering process for its wholly-owned Sunrise Battery Materials Complex. Clean TeQ to consider divesting an interest of up to 50% in the Sunrise Battery Materials Complex, in combination with long-term offtake.
Sama Resources [TSXV: SME] [GR;8RS] (OTCPK:SAMMF)
On June 4, Sama Resources reported:
Sama and HPX return 13 metres of 0.76% Nickel and 0.47% Copper at newly discovered zone at Yepleu. Côte d’Ivoire’s Minister of Mines and Minister of Scientific Innovation visit Yepleu Nickel-Copper-Palladium Project.
Cobalt27 Capital Corp. [TSXV:KBLT] [GR:27O][LN:OUPZ] (OTC:CBLLF)
Cobalt27 is a listed investment company that offers unique exposure to a portfolio of cobalt and nickel assets - Cobalt metal, cobalt royalties and direct cobalt/nickel properties, and one lithium royalty. Cobalt27 owns 2,905.7 tonnes of cobalt.
On June 18, Cobalt27 Capital Corp. announced: "Pala investments to acquire Cobalt 27 for C$501 Million; Creation of Nickel 28." Highlights include:
- "Acquisition to be completed at a 66% premium to current share price.
- Offer of C$5.75 per share, comprised of C$3.57 in cash plus C$2.18 in shares of the newly established Nickel 28.
- Nickel 28 will provide shareholders with continued direct exposure to nickel and cobalt."
Other juniors
Ardea Resources [ASX:ARL] (OTCPK:ARRRF), Artemis Resources (OTCQB:ARTTF) [ASV:ARV], Australian Mines (OTCQB:AMSLF) [ASX:AUZ], Cassini Resources [ASX: CZI] (OTC:CSSQF), Giga Metals (OTCPK:HNCKF) [TSXV:GIGA], Grid Metals Corp. [TSXV:GRDM] (OTCPK:MSMGF), New Age Metals (OTCQB:NMTLF) [TXV:NAM], Nickel Creek Platinum [TSX:NCP] (OTCQX:NCPCF), Pancontinental Resources Corporation (OTC:PUCCF) [TSXV:PUC], Polymet Mining (NYSEMKT:PLM) [TSX:POM], S2 Resources (ASX:S2R), St George Mining Ltd [ASX:SGO] [GR:SOG], Transition Metals (OTC:TNTMF) [TSXV:XTM], and Wall Bridge Mining [TSX:WM].
Note: Some of the above companies are covered in the Cobalt monthly news.
Conclusion
Nickel spot prices were flat in June and the LME nickel inventory was also flat and remains at ~7 -year low levels.
Highlights for the month were:
- India to acquire reserves of strategic minerals to power the country's move into EVs.
- EV experts tell nickel market to invest now or regret later.
- Confusing signals cloud London nickel market. Falling inventory yet prices remain low? Off-market storage... Resurgent mine production in Indonesia.
- Independence Group - Strong drill results at Grimlock JV, completes farm-in at Plumridge nickel project.
- Western Areas - high-grade nickel-copper-cobalt-PGE mineralisation at Mt Alexander - 10m @ 2.47% Ni, 1.06% Cu, 0.07% Co and 2.52g/t PGEs.
- RNC Minerals announces positive updated FS results for the Dumont Nickel-Cobalt Project.
- Poseidon Nickel reports outstanding high grade nickel drill results including -PBSD004 13.6m @ 5.61% Ni, 3.5m @ 14.01% Ni. PBSD006A 15.1m @ 8.64% Ni. PBSD009 37.9m @ 3.4% Ni.
- Cassini Resources completes acquisition of 80% of Yarawindah Brook Project.
- Clean TeQ commences a partnering process for its wholly-owned Sunrise Battery Materials Complex.
- Pala investments to acquire Cobalt 27 for C$501 Million; Creation of Nickel 28.
As usual, all comments are welcome.
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Disclosure: I am/we are long NORILSK NICKEL [LSE:MNOD], GLENCORE [LSX:GLEN], RNC MINERALS [TSX:RNX], AXIOM MINING (ASX:AVQ), ARDEA RESOURCES [ASX:ARL], AUSTRALIAN MINES [ASX:AUZ], POSEIDON NICKEL [ASX:POS], SAMA RESOURCES [TSXV: SME]. 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.
Additional disclosure: The information in this article is general in nature and should not be relied upon as personal financial advice.
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