You Should be Buying Public Nickel Companies Now

Recording date: 12th July 2023Nickel prices hanging in similar $20,500 - $21,000 range.  LME Inventories after bump up showing decline again at very low levels - 40,000 tonnesIndonesia Investment Minister Bahlil Lahadalia on Friday gave the latest updates on Indonesia’s proposal for a global nickel cartel, saying that it has had intense talks with some unnamed countries. Resource-rich Indonesia has been proposing a group of nickel-producing countries that operates in a similar manner to the Organization of the Petroleum Exporting Countries (Opec). The Opec says it aims to coordinate the petroleum policies of its member states and keep the oil markets stable. And Indonesia wants to see a similar group for nickel, which is a key ingredient for electric vehicle (EV) batteries. "There are three countries whom we already have been intensely communicating with," Bahlil told reporters in Jakarta on Friday, commenting on the progress of the Opec-style nickel group. The minister, however, refused to disclose the name of the said countries. When asked about their initial response to the plan, Bahlil said: "[they thought] it was a great idea, but we still need to work on the details of the proposal." The Corruption Eradication Commission (KPK) recently revealed that about 5.3 million tonnes of nickel ore from Indonesia were sent illegally to China from January 2020 to June 2022.Big couple of weeks for Ardea ResourcesNon-binding MOU signed with a Japanese Consortium consisting of Sumitomo Metal Mining, Mitsubishi Corporation and Mitsui & Co. to develop the Kalgoorlie Nickel Project - Goongarrie Hub.  SMM strength is HPAL processing so logical partner for this project and best positioned for success outside of IndonesiaArdea Resources Kalgoorlie Nickel Project global Mineral Resource Estimate (using a 0.5% Ni cut-off grade) now stands at 854Mt at 0.71% Ni and 0.045% Co for 6.1Mt of contained nickel and 386kt of contained cobalt.  Total resource contains over 6 million tonnes of nickel. This is Australian laterite different than what you see in tropical areas like Indonesia.Mining optimisation studies have projected production of approximately 30,000t of nickel and 2,000t of cobalt per year for more than 40 years.  Capital cost is A$3.1 billion.  The project generates Post-tax NPV7 of A$4,980M and IRR of 23%,  Average Annual EBITA of A$800M, Project pay back within 3.1 years Direct cash cost after Co by products of US$5,763/t Ni in MHP over life of mine. Metal Prices were $US25,000 for nickel, $60,000 for cobalt. Nice to see but a little on high side – cobalt will be challenged by all of the HPAL capacity coming online before nickel as ratio of production (roughly 10:1 is less than half total supply of  c.20:1A well-known former Sudbury mining executive is back in the news and is taking on a new role as chair of the newly formed Energy Transition Metals Board with Vale Base Metals, which calls itself one of the world's largest producers of responsibly-sourced nickel, copper, cobalt and platinum group metals. Mark Cutifani was previously chief operating officer (COO) at CVRD Inco, but he left Sudbury in 2007 to become chief executive officer (CEO) of AngloGold Ashanti, and then became CEO of mining giant Anglo American, one of the largest mining companies on the planet.  Poseidon Nickel – focus has been at Silver Swan / Black Swan – now on its way.  They also had past producing mines at another location Emily Ann / Maggie Hays.  New target At Maggie Hays West, Nickel has been intersected at the base of the WUU. Best results include:PLJA075 28m @ 0.66% Ni, 187 ppm Cu from 20m including 4m @ 1.32% Ni, 134ppm Cu from 40mPLJA076 8m @ 1.18% Ni, 143 ppm Cu from 40mPLJA078 24m @ 0.88% Ni, 220 ppm Cu from 12m including 12m @ 1.16% Ni, 256ppm Cu from 20mPLJA080 4m @ 0.52% Ni, 744 ppm Cu from 36mPLJA081 7m @ 0.70% Ni, 588 ppm Cu from 40m (EOH).