Nickel: Signs of Price Discovery. Who Has Been Naughty & Who is Nice!

Recording date: 22nd February 2024As Chinese New Year comes to an end, nickel prices have moved up to the upper end of the recent range over $17,000 per tonne trading at 3 month high of $17,200. Will wait to see commentary by Monday on current market conditions in China. We will need to see whether it can be sustained but a good start to Year of the Dragon.Some more capitulation moments – BHP taking multi-billion dollar write-downs on nickel business, threatening to put entire Nickel West operation on care & maintenance as a business lost $200 million in the most recent period. Glencore also announced it's not funding Koniambo any further and looking to sell its 49% interest.  The Australian government has now put a nickel on the critical minerals list allowing some (not sure why wasn’t on in the first place) and has announced a royalty cut to help provide further financial support to the sector. France offering to provide $150 million in funding for Prony Resources (Goro project) to keep it afloat.  Canada Nickel announced results at Bannockburn and a new discovery at Mann Central. Holding a conference call on Friday to talk through the exploration plan.Updated Horizonte estimate came through: $454 million and 18 more months to completion.  Looking to put finance in place by Q2-2024 and complete by Q1 2026. The updated capital cost is now US$1,004 million, approximately 87% higher than the previously disclosed capex budget of US$537 million.Magna Metals released some good footwall orebody drilling results at their 109FW zone. MCR-234-061: 0.6% Ni, 1.0 % Cu, 9.5 g/t Pt + Pd + Au over 14.7 metres, MCR-24-065: 0.2% Ni, 1.1 % Cu, 11.4 g/t Pt + Pd + Au over 10.2 metres with some higher grade intervals as wellPower Nickel announced results of 6 holes – 4 holes intersecting mineralization - hole PN-23-40 and PN-23-42 carrying some attractive high-grade zones of 12.77 m @ 0.62% Ni, 0.63% Cu, 0.04% Co, 0.78 g/t Pd and 0.22 g/t Pt and 7.77 m @ 0.71% Ni, 0.12% Cu, 0.04% Co, 0.42 g/t Pd and 0.03 g/t Pt respectively.—Learn more: https://cruxinvestor.com/categories/commodities/nickelSign up for Crux Investor: https://cruxinvestor.com